Real Estate in a Mixed Asset Portfolio PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Real Estate in a Mixed Asset Portfolio PDF full book. Access full book title Real Estate in a Mixed Asset Portfolio by Maximilian Wegener. Download full books in PDF and EPUB format.
Author: Maximilian Wegener Publisher: GRIN Verlag ISBN: 3656431612 Category : Business & Economics Languages : en Pages : 13
Book Description
Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 8.0, Maastricht University (SBE), course: Investment analysis and portfolio management, language: English, abstract: Most of today’s portfolios include bonds and equities. This composition enables investors to reduce firm-specific risk and diversify among different asset classes. Important assets that could further enhance diversification are investments in real estate. The risk-reducing effect of real estate partly stems from its local nature. Furthermore, investors, both local and international, face differences concerning the information available with respect to the real estate market and the bond or stock market. The former offers less information to investors than the latter market. Real estate markets are less integrated, which means that there are not many investments made in this market. This can be a further explanation of the positive diversification effects of real estate. Therefore, one could ask whether direct- or indirect real estate investment enhances diversification. The purpose of this report is to investigate whether there is a positive diversification effect of real estate on the risk of a portfolio. The report takes a look at previous findings of researchers concerning the diversification effect of real estate and proceeds with the analysis of the descriptive statistics. Next, the correlation between indirect and direct real estate, bonds and equity is examined followed by.....
Author: Maximilian Wegener Publisher: GRIN Verlag ISBN: 3656431612 Category : Business & Economics Languages : en Pages : 13
Book Description
Seminar paper from the year 2012 in the subject Business economics - Investment and Finance, grade: 8.0, Maastricht University (SBE), course: Investment analysis and portfolio management, language: English, abstract: Most of today’s portfolios include bonds and equities. This composition enables investors to reduce firm-specific risk and diversify among different asset classes. Important assets that could further enhance diversification are investments in real estate. The risk-reducing effect of real estate partly stems from its local nature. Furthermore, investors, both local and international, face differences concerning the information available with respect to the real estate market and the bond or stock market. The former offers less information to investors than the latter market. Real estate markets are less integrated, which means that there are not many investments made in this market. This can be a further explanation of the positive diversification effects of real estate. Therefore, one could ask whether direct- or indirect real estate investment enhances diversification. The purpose of this report is to investigate whether there is a positive diversification effect of real estate on the risk of a portfolio. The report takes a look at previous findings of researchers concerning the diversification effect of real estate and proceeds with the analysis of the descriptive statistics. Next, the correlation between indirect and direct real estate, bonds and equity is examined followed by.....
Author: Waldemar Maurer Publisher: GRIN Verlag ISBN: 3640430859 Category : Business & Economics Languages : en Pages : 57
Book Description
Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,3, European Business School - International University Schlo Reichartshausen Oestrich-Winkel, language: English, abstract: Constructing smart portfolios is the key goal of every investor regardless of the risk aversion. Accessible investments for investors are for instance stocks, bonds, treasury bills, and real estate. According to Seiler, Webb, and Myer (1999, p. 163) "real estate asset management has been and will continue to be a topic of great interest". In the year 1971 U.S. public real estate had a total market capitalization of US$1.4bn, while in 2006 public real estate had a market capitalization of US$438bn (National Association of Real Estate Investment Trusts NAREIT], 2007, p. 1). The U.S. private real estate index has more than tripled from US$84bn in market value in the first quarter of 2001 to US$266m in the first quarter of 2007 (National Council of Real Estate Investment Fiduciaries NCREIF],2007, p. 1. It is obvious that the real estate market has been growing incredibly and real estate has became more and more important as an investment opportunity. However, all available data on ownership of real estate show that pension funds hold 3.5% to 4.0% of their total assets in real estate (Chiochetti, SA-AADU, & Shilling, 1999, p. 193). Optimal allocation seems to be a problem. Another point is that some degree of diversification can be achieved without real estate. So why should investors hold real estate in their portfolios? Does real estate outperform stock and bond returns? What risks are linked with real estate investments? The aim of this paper is to provide the reader with a deep insight into the real estate investment discussion and to present the advantages and disadvantages of real estate in a mixed-asset portfolio. In a nutshell, at the end of this paper the reader should be able to decide, whether real estate investment is justifiable or not.
Author: Emmanuel Kanigwa Publisher: Open Dissertation Press ISBN: 9781374728189 Category : Technology & Engineering Languages : en Pages : 76
Book Description
This dissertation, "The Performance of Direct and Indirect Property Investment in Hong Kong" by Emmanuel, Kanigwa, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: ii Abstract: Modern portfolio theory (MPT) advocates a process where investor's capital will be allocated among various asset classes based on quantitative and analytical approach taking into consideration of their possible rate of returns vis-a-vis objectives and/or risk tolerances. Using Mean Variance Optimisation concept, this dissertation examines the performance and diversification potential of Direct and indirect property in a mixed asset portfolio in Hong Kong for the period from1984 to 2003. Unlike most studies which have concentrated on how much to include of real estate by measuring the risk effect of increase of real estate in portfolio composition at isolated points, this dissertation completely takes another angle by constructing full efficient frontiers and assessing the diversification effects of real estate inclusion at different risk return levels. The results for the study period indicate that, though the property market had some ups and downs, both direct property and indirect property offer diversification benefits depending on one's risk preference. Indirect property offered higher returns than the direct property but were also more risky, and therefore capable to offer a diversification benefits to people of high risk preference while direct property in spite of their relatively low returns could offer diversification benefits to low and moderate risk preference people in a mixed asset portfolio. On a more positive note, the findings do suggest that almost all investors benefit to some extent by holding some direct and indirect property. DOI: 10.5353/th_b3050999 Subjects: Real estate investment - China - Hong Kong Portfolio management
Author: Colin A. Jones Publisher: Springer Nature ISBN: 3031009681 Category : Business & Economics Languages : en Pages : 320
Book Description
This textbook, aimed at undergraduate and postgraduate real estate programmes, provides an overview of real estate investment and pricing in a global context with special attention to the diversification of asset types in three parts. Designed as a successor to Will Fraser’s successful student-led investment book, Principles of Property Investment and Pricing, it encompasses the microeconomics of real estate markets and context alongside pricing failures of real estate highlighted by the impact of the global financial crisis, especially with regard to irrationality and risk. Part 1 focuses on the microeconomics of the real estate sector, covering the complex nature of real estate and the consequences for economic analysis and the operation of the market, the underlying essential processes and principles of real estate investment decision making, including a pricing model, and the significance of real estate cycles and why they occur. Part 2 begins with the characteristics of real estate as an investment, differentiated between direct and indirect investment, and making comparisons with alternative stock market assets, then examines real estate investors and their objectives, including financial institutions, REITs and other indirect vehicles. Additionally, it sets out the frameworks within which real estate investment decisions are made in relation to other investments and focuses on decision-making processes and the practicalities of performance measurement. Emerging real estate debates are discussed in Part 3. These chapters are primarily forward-looking to the implications and challenges for real estate investment, including the consequences of recent aspects of regulation, changes to occupier demand, partly driven by technology but also sustainability pressures, the logic and difficulties of international investment, with a particular focus on emerging markets.
Author: Richard O. Michaud Publisher: Oxford University Press ISBN: 0199887195 Category : Business & Economics Languages : en Pages : 207
Book Description
In spite of theoretical benefits, Markowitz mean-variance (MV) optimized portfolios often fail to meet practical investment goals of marketability, usability, and performance, prompting many investors to seek simpler alternatives. Financial experts Richard and Robert Michaud demonstrate that the limitations of MV optimization are not the result of conceptual flaws in Markowitz theory but unrealistic representation of investment information. What is missing is a realistic treatment of estimation error in the optimization and rebalancing process. The text provides a non-technical review of classical Markowitz optimization and traditional objections. The authors demonstrate that in practice the single most important limitation of MV optimization is oversensitivity to estimation error. Portfolio optimization requires a modern statistical perspective. Efficient Asset Management, Second Edition uses Monte Carlo resampling to address information uncertainty and define Resampled Efficiency (RE) technology. RE optimized portfolios represent a new definition of portfolio optimality that is more investment intuitive, robust, and provably investment effective. RE rebalancing provides the first rigorous portfolio trading, monitoring, and asset importance rules, avoiding widespread ad hoc methods in current practice. The Second Edition resolves several open issues and misunderstandings that have emerged since the original edition. The new edition includes new proofs of effectiveness, substantial revisions of statistical estimation, extensive discussion of long-short optimization, and new tools for dealing with estimation error in applications and enhancing computational efficiency. RE optimization is shown to be a Bayesian-based generalization and enhancement of Markowitz's solution. RE technology corrects many current practices that may adversely impact the investment value of trillions of dollars under current asset management. RE optimization technology may also be useful in other financial optimizations and more generally in multivariate estimation contexts of information uncertainty with Bayesian linear constraints. Michaud and Michaud's new book includes numerous additional proposals to enhance investment value including Stein and Bayesian methods for improved input estimation, the use of portfolio priors, and an economic perspective for asset-liability optimization. Applications include investment policy, asset allocation, and equity portfolio optimization. A simple global asset allocation problem illustrates portfolio optimization techniques. A final chapter includes practical advice for avoiding simple portfolio design errors. With its important implications for investment practice, Efficient Asset Management 's highly intuitive yet rigorous approach to defining optimal portfolios will appeal to investment management executives, consultants, brokers, and anyone seeking to stay abreast of current investment technology. Through practical examples and illustrations, Michaud and Michaud update the practice of optimization for modern investment management.
Author: Arthur L. Schwartz Jr. Publisher: Springer Science & Business Media ISBN: 9400903677 Category : Business & Economics Languages : en Pages : 206
Book Description
Arthur L. Schwartz, Jr. and Steven D. Kapplin The focus of this volume of the ARES Monograph Series is new ideas in real estate investment. Within this volume, empiricial studies, literature reviews, and tutorials examine a broad range of important investment issues. Many new and innovative ideas are presented. This volume should be a rich source of real estate investment ideas for many years to come. Kapplin and Schwartz examine the returns of two types of REITs, as well as that of Master Limited Partnerships (MLP), over the 1987-1989 time period. Their sample consisted of 54 real estate securities; they conclude that these entities did not provide an effective inflation hedge. MLP returns exceeded that of the overall stock market, but the two REIT types did not provide rates-of-return in excess of the marked. An extensive review of the commercial real estate return literature is presented by Fletcher. He focuses upon studies that utilize commingled real estate fund (CREF) data. His detailed overview of the subject provides a much needed synthesis of the current literature. Roulac presents an extensive discussion of the differences in the per spectives of individual versus institutional investors. In his essay, he considers such factors as scale, diversification, and related issues. Addi tionally, he examines a wide range of literature from within academia, 1 INTRODUCTION 2 as well as the opinions of various real estate gurus. He concludes that behavioral factors override economic considerations.
Author: Maximilian Wegener
Author: Maximilian Wegener
Author: Asmah Mohd. Nasir
Author: Waldemar Maurer
Author: Vijay Singh
Author: Emmanuel Kanigwa
Author: Colin A. Jones
Author: Stephen J. Lee
Author: Richard O. Michaud
Author: Elaine M. Worzala
Author: Arthur L. Schwartz Jr.