Real Estate Portfolio Size and Risk Reduction
Risk diversification is important to all investors. However, commercial real estate investors in the UK tend to concentrate their holdings in relatively few properties; as a consequence they are vulnerable to significant risk of underperforming the overall market or a target rate of return. Given the potentially high risk of owning only a few properties, we follow de Vassal (2001) and examine the return/risk benefits of holding more properties in a portfolio. The analysis uses Monte Carlo techniques to simulate total returns of real estate portfolios with varying numbers of properties using individual property data over the period 1994-2003.
Year of publication: |
2005
|
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Authors: | Devaney, Steven ; Lee, Stephen |
Institutions: | European Real Estate Society - ERES |
Saved in:
freely available
Extent: | text/html |
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Series: | ERES. |
Type of publication: | Book / Working Paper |
Source: |
Persistent link: https://www.econbiz.de/10010834152
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