Author: Alan J. Ziobrowski
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 332

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Book Description

Author: Waldemar Maurer
Publisher: GRIN Verlag
ISBN: 3640430654
Category : Business & Economics
Languages : en
Pages : 30

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Book Description
Seminar paper from the year 2007 in the subject Business economics - Miscellaneous, grade: 1,3, European Business School - International University Schloß 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: Maximilian Wegener
Publisher: GRIN Verlag
ISBN: 3656431612
Category : Business & Economics
Languages : en
Pages : 13

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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: Stephen J. Lee
Publisher:
ISBN:
Category : Portfolio management
Languages : en
Pages : 11

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Author: Piyush Tiwari
Publisher: John Wiley & Sons
ISBN: 1118836626
Category : Business & Economics
Languages : en
Pages : 288

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Book Description
The financial deregulation of the last quarter century has meantlarge flows of funds around the world seeking the highestrisk-adjusted return for investors. Real estate is now establishedas an important asset class and advances in information technologyprovide the necessary tools to complement global developments inreal estate finance and investment. A variety of investment vehicles have emerged, andReal EstateFinance in the New Economy examines these along withfinancing and risk in the context of globalization, deregulationand an increasingly integrated international world economy byexploring questions like: How have real estate financial structures evolved as economiesgrow and become internationalised? What role do economic change and financial systems play in thedevelopment of real estate investment? Are the risks associated with the ‘new economy’really new? What is the future direction for real estate financing? The authors develop an economic framework for discussions onindividual financial products to examine how real estate financialstructures change with economic growth and internationalisation andalso to show how developments in real estate finance impacteconomic growth.

Author: Onousa Boontanorm
Publisher:
ISBN:
Category :
Languages : en
Pages : 72

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Book Description
This thesis explores the topic of diversification opportunities in international real estate, with focus on private real estate markets in developed countries. In examining the characteristics of returns and interrelatedness between international real estate, stocks and bonds markets from the time period spanning 2000 to 2009, we find that 2008 was the only year within the past decade in which several countries saw synchronized negative returns on a calendar year basis in the stocks and real estate markets, and even so the synchronized negative returns was only experienced by half of the countries within the 10-country opportunity set. The amplitude of the peak to trough drop in the cumulative value of the assets was small in real estate on average relative to that of stocks. These findings suggest that investors' should benefit from holding international real estate within their portfolios, even in an extreme down market. Modern portfolio theory is used to analyze and compare ex-ante diversification opportunities in international real estate, stocks and bonds and domestic diversification opportunities for the three asset classes from the perspectives of U.S. and European investors. We project expected returns for each of the markets and used historical risks (volatility) from the 2000-2009 period as estimates for volatility. When returns are calculated in local currencies, international diversification in the real estate portfolio (diversified within a 10-country opportunity set) should help U.S. investors substantially improve their portfolio risk-return efficiency relative to domestic diversification (within a 6-metropolitan area opportunity set), as the markets within the U.S. domestic opportunity set provide unattractive risk-return efficiency and their movements are highly correlated. By contrast, European investors will benefit less from the same international diversification strategy relative to domestic diversification (within 5 Eurozone countries) as several Eurozone markets are able to provide considerable risk-return efficiency and low correlations can be found in some pairs of markets. Applying home bias and limits on exposure to any single country i.e. country caps to the portfolio allocation helps to balance the allocation weights for the investor's portfolio but also significantly limits the investor's ability to take advantage of diversification opportunities provided by the international markets. When returns are calculated in the investors' domestic currencies, additional currency risk increases the portfolio volatility without providing additional expected return, reducing diversification benefits of international real estate. Even so, international diversification potential to U.S. investors should still be considerable, while that to European investors' should be minimal.

Author: Piyush Tiwari
Publisher: Bloomsbury Publishing
ISBN: 1137049081
Category : Business & Economics
Languages : en
Pages : 224

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Book Description
As the real estate market becomes increasingly international, it is essential to understand how specific national markets operate and relate to one another. The authors identify the similarities and differences observed across European, Asian and American markets, providing a framework to explain how these diverse national markets converge.

Author: Elaine M. Worzala
Publisher:
ISBN:
Category :
Languages : en
Pages : 452

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Book Description

Author: Robert R. Grauer
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This paper compares the investment policies and returns for portfolios of stocks and bonds with and without up to three categories of real estate. Both a domestic and a global setting is examined, with and without the possibility of leverage. The portfolios were generated via the dynamic investment model based on the empirical probability assessment approach applied to past (joint) realizations of returns, both with and without correction for quot;smoothingquot; in the real estate data series. Our principal findings are: (1) the gains from adding real estate, on a semi-passive (equal-weighted) basis, to portfolios of either U.S. or global financial assets were relatively modest; in contrast, (2) the gains from adding real estate to the universe of U.S. financial assets under an active strategy were rather large (in some cases highly statistically significant), especially for the very risk-averse strategies; (3) the gains from adding (U.S.) real estate to a universe of global financial assets under an active strategy were mixed, although generally favorable for the highly risk-averse strategies; (4) correcting for second-moment smoothing in the real estate returns series had a relatively small impact for the more risk-tolerant strategies; and (5) there was some evidence that desmoothing resulted in improved probability estimates.

Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 584

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Book Description