Rates of Return for Farm Real Estate and Common Stock

1968 ◽  
Vol 50 (2) ◽  
pp. 213-224 ◽  
Author(s):  
William E. Kost
Keyword(s):  
Real Estate ◽  
Common Stock ◽  
Rates Of Return

International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 43-56
Author(s):  
Tsong-Yue Lai ◽  
◽  
Hin Man Mak ◽  
Ko Wang ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Supply And Demand ◽  
Short Selling ◽  
Local Market ◽  
Short Sales ◽  
Rates Of Return ◽  
Short Sale ◽  
Asset Pricing Models ◽  
Short Sell ◽  
Property Markets

Asset pricing models have been used extensively in the recent real estate literature to evaluate real estate performance and estimate required rates of return of properties. In this paper, we show that the CAPM and its variants will derive a biased result when short sales are not allowed in the market. This problem is particularly serious for Asian property markets where investors are not able to short sell real estate indexes as a substitute for short selling real properties. We also demonstrate that the bias resulting from the short-sale constraint is related to the supply-and-demand conditions in the local market.

scholarly journals International Real Estate Review

2007 ◽  
Vol 10 (2) ◽  
pp. 1-22
Author(s):  
Lawrence Kryzanowski ◽  
◽  
Margarita Tcherednitchenko ◽  
Keyword(s):  
Interest Rate ◽  
Real Estate ◽  
Composite Index ◽  
Market Risk ◽  
Real Estate Investment Trusts ◽  
Common Stock ◽  
Real Estate Investment ◽  
Short Run ◽  
Equity Investments ◽  
Stock Portfolio

The return performance and factor sensitivities of Canadian equity real estate investment trusts (E-REITs) are examined. Today, typical and average Canadian E-REIT IPOs are correctly priced based on first- day and subsequent short-run returns. The overpricing evident earlier in the 1993-96 period for typical and average E-REIT IPOs has corrected. E-REITs are equity investments with about one-half the market risk, and greater ensitivity to interest-rate changes, than the S&P/TSX Composite Index. E-REITs outperformed the S&P/TSX Composite over the 1996-2004 period on a return, risk, and market- and/or risk-adjusted basis. Thus, E-REITs provided material diversification benefits with no sacrifice in return, when added to a common stock portfolio during the studied period.

scholarly journals An Empirical Analysis of Dairy Farm Reinvestment Versus Tax-Deferred Plans for Retirement Income

1984 ◽  
Vol 13 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Loren W. Tauer
Keyword(s):  
Mutual Funds ◽  
Empirical Analysis ◽  
Dairy Farm ◽  
Common Stock ◽  
Retirement Income ◽  
Retirement Plans ◽  
Rates Of Return ◽  
Farm Business

This study empirically compares the retirement values of dairy farm investments to tax-deferred retirement investments that are funded with bank certificates of deposit or common stock. For a successful dairy farm, the results indicate that tax-deferred retirement plans that generate rates of return similar to certificates of deposit or common stock mutual funds are probably not as good an investment as reinvesting farm earnings back into the farm business.

scholarly journals Measures of Downside Risk Under Conditions of Downturn in the Real Estate Market

2013 ◽  
Vol 21 (3) ◽  
pp. 81-87 ◽  
Author(s):  
Rafał Wolski
Keyword(s):  
Real Estate ◽  
Risk Measures ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Financial Data ◽  
Total Risk ◽  
Rates Of Return ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market

Abstract 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 literature, risk calculated on the basis of standard semideviation may actually better reflect the nature of property investment. However, in this context, the question of whether or not this measure will lead to risk underestimation at a time of a downturn in the real estate market, resulting in inadequate investment decisions aggravating investor losses arises. Therefore, the present paper presents portfolios constructed using either classical risk measures or measures based on “downside deviations” of rates of return. The results of investment in these portfolios are analyzed.

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