TITLE

The Return Due to Diversification of Real Estate to the U.S. Mixed-Asset Portfolio

AUTHOR(S)
Lee, Stephen L.
PUB. DATE
January 2005
SOURCE
Journal of Real Estate Portfolio Management;Jan-Apr2005, Vol. 11 Issue 1, p19
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Booth and Fama (1992) observe that the compound return of a portfolio is greater than the weighted average of the compound returns of the individual investments, a difference referred to as the return due to diversification (RDD). Thus, assets that offer high RDD to a portfolio should be particularly attractive investments for long-term investors. This paper shows that U.S. direct real estate is just such an asset; however, the results are dependent on the percentage allocation to direct real estate and the asset class replaced.
ACCESSION #
15794028

 

Related Articles

  • A Seller's Conundrum. Chapman, Parke // National Real Estate Investor;May2005, Vol. 47 Issue 5, p20 

    The article reports that the real estate investment trusts (REIT) in the United States are pruning their portfolios at high prices. According to an industry expert, REITs used to buy and hold their assets forever, but over the past few years there has been more and more active portfolio...

  • AN UNDER-APPRECIATED OPPORTUNITY?  // Personal Real Estate Investor;Mar/Apr2013, p66 

    The article presents the highlights of the 2012 "By Owner" Annual Report and Corporate Housing Survey. The significance of investing in corporate housing units on increasing the income of real estate investors is emphasized. An outlook on the real estate market and corporate housing in 2013 is...

  • Executives create model to measure risk accurately. Jacobius, Arleen // Pensions & Investments;2/20/2006, Vol. 34 Issue 4, p32 

    The article discusses existing benchmarks which understates risk in real estate portfolios. With allocations to real estate rapidly rising, it is becoming increasingly important to have a way to compare real estate to other asset classes in an overall portfolio and to quantify how real estate...

  • The Case for REITs in the Mixed-Asset Portfolio in the Short and Long Run. Lee, Stephen; Stevenson, Simon // Journal of Real Estate Portfolio Management;Jan-Apr2005, Vol. 11 Issue 1, p55 

    The poor performance of the Stock Market in the United States up to the middle of 2003 has meant that real estate investment trusts (REITs) are increasingly been seen as an attractive addition to the mixed-asset portfolio. However, there is little evidence to indicate the consistency of the role...

  • El Paso 911 to Search For Real Estate. Forde, Arnella I. // Investment Management Weekly;10/25/2004, Vol. 17 Issue 42, p3 

    Reports on a search that will be initiated by the El Paso Firemen & Policemen's Pension Fund for a real estate manager to oversee its real property portfolio. Initiative established by El Paso at the beginning of 2004; Asset management companies selected by El Paso as finalists in its emerging...

  • Earthquake Events and Real Estate Portfolios: A Survey Result. Weaver, William C. // Journal of Real Estate Research;Summer90, Vol. 5 Issue 2, p277 

    Abstract. A report on a survey of major equity REIT and corporate investors in California real estate after the October 17, 1989 earthquake. Only 43% of the respondents reported that they planned to formally reconsider California investment policies and only about 13%-17% suggested that it was...

  • Should winners be grinners? Skelt, Richard // Money Management;7/4/2013, Vol. 27 Issue 25, p18 

    The article offers the author's insights regarding investment performance and the usefulness of the batting average concept for investors. The author mentions that the number of winning trades is often describe as a proportion of the trade's total number placed as the batting average. He notes...

  • PRO PICK. Chetty, Nesi // Finweek;10/4/2012, p31 

    The article offers information on the recommended property share portfolios. It states that growthpoint offers a mix of A-grade office, defensive industrial and retail properties. It mentions that the largest property in the rebosis portfolio is the Hemingways Mall in London, England. It adds...

  • Real estate investors get inventive with allocations. Jacobius, Arleen // Pensions & Investments;5/2/2005, Vol. 33 Issue 9, p3 

    The article informs that institutional real estate investors are finding new ways to invest their ever-increasing allocations to the asset class in the United States. Among the routes they're taking are joint ventures with real estate operators, instead of placing money with traditional real...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics