The pension fund investments should be characterised by a long term, low risk and profitability, which implicates the necessity of portfolio diversification. In general, pension funds having regular long-term contributions should develop the long-term policy and its effects would be responsible...

The classical approach to the SML assumes that it is a straight line, which means that an investor is willing to accept lower return on the negative beta assets than on the risk-free assets. However, Cloninger, Waller, Bendeck and Revere (2004) challenged this commonly accepted approach. The...

Some authors suggest that the use of standard deviation as a measure of total risk for returns on real estate leads to risk overestimation, as the classical Markowitz model does not account for the skewness of financial data, thus making the results unreliable. According to the available...

Traditionally, it is believed that real estate can be an important component of an investment portfolio as it reduces risk due to the diversification potential coming from its low/negative correlation with stocks and bonds. However, contemporary development in the form of the invention and...

The economy is subject to periodic changes in activity, which is apparent in the financial situation of households and enterprises. However, the recent economic crisis has been particularly severe. After the great increase in economic activity, which in many countries was connected with the boom...

The beta coefficient is one of the most popular indices used in contemporary finances. Despite the fact that there are justified doubts connected with its application, it is currently difficult to imagine a situation in which the cost of capital would be calculated without the use of the CAPM...