scholarly journals Designing a Portfolio Based On Risk and Return of Various Asset Classes

2017 ◽  
Vol 9 (2) ◽  
pp. 142
Author(s):  
Rashmi Soni
Keyword(s):  
Real Estate ◽  
Equity Market ◽  
The Other ◽  
Positive Relation ◽  
Minimum Risk ◽  
Risk And Return ◽  
Risk Characteristics ◽  
Asset Classes ◽  
Very High

Every investor’s dream is to maximize return with minimum risk. Since this is practically impossible, the target is to optimize the risk and return. Different asset classes perform differently at different points of time. The performance is affected by the business as well as other local and global macroeconomic parameters. Crude oil, real estate, gold etc. have given very high returns previously but have turned unattractive in recent times. Equity market has over a long term returned handsome benefits but is highly volatile and hence fraught with risks. The risk free investments like fixed, on the other hand, fall in the low-risk low-return category. The purpose of this study is to analyze the returns of various asset classes and correlate these with their risk characteristics in order to verify whether there is always a positive relation between risk and return across all asset classes and to find out the portfolio mix of the various asset classes corresponding to the desired return and risk.

scholarly journals Aspects of volatility targeting for South African equity investors

2014 ◽  
Vol 17 (5) ◽  
pp. 691-699 ◽  
Author(s):  
Bhekinkosi Khuzwayo ◽  
Eben Mare
Keyword(s):  
South African ◽  
Asset Allocation ◽  
Implied Volatility ◽  
Equity Market ◽  
Risky Asset ◽  
Risk And Return ◽  
Asset Classes ◽  
The Absolute ◽  
Equity Index ◽  
Targeting Strategy

We consider so-called volatility targeting strategies in the South African equity market. These strategies are aimed at keeping the volatility of a portfolio consisting of a risky asset, typically an equity index, and cash fixed. This is done by changing the allocation of the assets based on an indicator of the future volatility of the risky asset. We use the three month rolling implied volatility as an indicator of future volatility to influence our asset allocation. We compare investments based on different volatility targets to the performance of bonds, equities, property as well as the Absolute Return peer mean. We examine risk and return characteristics of the volatility targeting strategy as compared to different asset classes.

Comparison of the Conventional and the Ultrasound Methods of Liposuction

1995 ◽  
Vol 12 (3) ◽  
pp. 219-220 ◽  
Author(s):  
Ziya Saylan
Keyword(s):  
Abdominal Wall ◽  
Conventional Method ◽  
Recovery Time ◽  
The Other ◽  
Long Term Results ◽  
Ultrasound Method ◽  
Short Recovery Time ◽  
Conventional Methods ◽  
Very High

This article compares the results of the ultrasound and the conventional methods of liposuction and tries to determine the advantages of the ultrasound method. In comparison to the conventional method, ultrasound liposuction shows much better results in saddlebags, the abdominal wall, and the buttocks. The treatment of cellulite with ultrasound liposuction has proved to be more successful and the lift effect of the skin remains 4–6 months longer than with conventional liposuction. On the other hand, the long-term results do not show any significant differences between the two methods; we have observed equal results from both techniques after six months. Ultrasound liposuction at the knees, inner thighs, arms, and ankles has proven not to be very successful. The advantages of the ultrasound method are less pain, less bruising, less blood in the aspirate, and a short recovery time. The disadvantages are the very high expenses and the impossibility of using the aspirated fat again.

scholarly journals Global Portfolio Diversification and Equity Market: Evidence from Trading Partners of Pakistan

2018 ◽  
Vol 6 (1) ◽  
pp. 20-34
Author(s):  
Muhammad Husnain ◽  
◽  
Ume Habiba ◽  
Shahnaz Arifullah ◽  
Izhar Muhammad ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Equity Markets ◽  
Equity Market ◽  
Portfolio Diversification ◽  
Weekly Basis ◽  
Policy Makers ◽  
Trading Partners ◽  
Portfolio Managers ◽  
Asset Classes

The influential work of Markowitz (1952, 1959) provides foundation to modern investment philosophy. Investors can reap the potential benefit of portfolio diversification only if the involved asset classes in investment basket are not perfectly correlated. Objective of this study is to empirically investigate the cointegration among equity market of Pakistan and its major trading partners (China, France, Germany, Hong Kong, Japan, Korea, Malaysia, UK and USA). Sample period of study starts from 2004 to 2015, on weekly basis. Bivariate cointegration (Johansen, 1991, 1995) analysis reveals that equity market of Pakistan has no long term relationship with any of the equity markets of its major trading partners. Therefore, we recommend to potential investors, portfolio managers, and policy makers that prospective benefit of portfolio diversification can be achieved by investing in the equity markets of major trading partners of Pakistan. Further, they should be vigilant regarding the co-movement among equity markets during portfolio management decisions.

A Bank with a Divided Mandate

2020 ◽  
pp. 30-45
Author(s):  
Einar Lie
Keyword(s):  
Real Estate ◽  
Money Supply ◽  
The Other ◽  
The Public ◽  
The Road ◽  
Monetary System ◽  
Other Hand ◽  
The One ◽  
Value Of Money

This chapter examines the two mandates of Norges Bank. In autumn of 1818, Norges Bank began providing ordinary services to the public, discounting bills and lending directly against real estate. The institution was now both the nation’s bank of issue and its sole bank. Expectations of what the bank was to achieve pulled in two diametrically opposed directions. On the one hand, the bank was to take control of the inflated monetary system and bring the value of money back to par, namely the silver value guarantee issued when the Storting established the bank in 1816. Based on both contemporary and modern wisdom, this would speak in favour of tightening the money supply. On the other hand, the bank was to meet the country’s considerable need for credit, which would speak in favour of adding liquidity. However, a desire to supply more credit to farmers, merchants, timber traders, and others competed with the long-term goal of returning money to par. Indeed, the reason why the road to par became so long and winding has to do with the desire to supply the nation with credit: both the money supply and credit volumes were expanded repeatedly to meet the country’s borrowing needs.

scholarly journals International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 26-42
Author(s):  
Simon Stevenson ◽  
Keyword(s):  
Real Estate ◽  
Empirical Evidence ◽  
Strong Evidence ◽  
Positive Relationship ◽  
International Markets ◽  
Equity Market ◽  
The Other ◽  
Real Estate Securities ◽  
The Relationship ◽  
Minimal Evidence

This study re-examines the relationship between real estate securities and inflation in a total of ten international markets. In addition to the raw data, both the orthogonalized and hedged approaches were adopted in order to strip out the general impact of the domestic equity market. The results revealed that there is minimal evidence of a positive relationship between real estate securities and inflation, which is in line with existing empirical evidence. However, the strong evidence of perverse relationship, noted in previous studies of REITs, is not robust throughout the other nine markets. The hedged and orthogonalized data also provided minimal evidence in favour of a positive relationship, both in the short and long terms.

scholarly journals Consumers' Choice Factors for Buying Residential Property in the Philippines: An Empirical Investigation

2020 ◽  
Vol 9 (4) ◽  
pp. 271-276
Author(s):  
Jose Mari Marcella Lee ◽  
Eduardo G. Ong
Keyword(s):  
Real Estate ◽  
Purchase Intention ◽  
Empirical Investigation ◽  
The Philippines ◽  
The Other ◽  
Residential Property ◽  
High Importance ◽  
Other Hand ◽  
Level Of Importance ◽  
Very High

The researcher studied and investigated the level of importance of consumers’ choice mainly price, location, safety and security, facilities and amenities, and exclusivity in the Philippines. This research was limited to 400 potential residential property buyers from any of the top 10 real estate developers in the Philippines. This study focused on 5 consumers’ choice factors mainly price, location, safety and security, facilities and amenities, and exclusivity towards purchase intention of residential property in the Philippines. Among the 5 consumers’ choice factors for buying residential property, the number one consideration is the safety and security (Mean = 5.530), followed by price (Mean = 5.488), location (Mean = 5.424), facilities and amenities (Mean = 5.266), and exclusivity (Mean = 4.983). From this study, four out of five consumers’ choice factors are rated very high important namely: price, location, safety and security, and facilities and amenities. On the other hand, exclusivity is rated of high importance in terms of buying a residential property.

scholarly journals Product development of the leather good using Walton's matrix

2020 ◽  
Author(s):  
Alina Iovan Dragomir ◽  
Alexandra Luca
Keyword(s):  
Creative Industries ◽  
The Other ◽  
Design Phase ◽  
High Profit ◽  
Good Product ◽  
Production Strategies ◽  
The Matrix ◽  
Leather Good ◽  
Very High

One of the most popular activities included in creative industries in Romania is leather goods craft. Nowadays the consumer needs are very high that’s why the companies are facing many challenges and will resist on the market only those who will be the first to launch a certain product or surprise the market. In this paper was used Walton's matrix in order to identify a product that will provide a high profit and is useful for developing production strategies and the long-term development plan of the company's portfolio. This method was applied on a leather good product for women, made from leather. The opinions of the customers about the product, as well as the problems identified by them are very important for the development team in order to obtain new improved products. Modular matrix helps to obtain a technological design model from the design phase. The main advantage of the matrix is the fact that the development is focused on the module without having an impact on the relationships with the other parts. The modular matrix was developed using DSMMatrix program.

scholarly journals Diversifikationsvorteile verbriefter Immobilienanlagen in einem Mixed-Asset-Portfolio

2011 ◽  
Vol 12 (2) ◽  
pp. 170-191 ◽  
Author(s):  
Roland Füss ◽  
Felix Schindler
Keyword(s):  
Real Estate ◽  
Asset Allocation ◽  
Hedge Funds ◽  
Cash Flows ◽  
Investment Horizon ◽  
Long Run ◽  
Asset Portfolio ◽  
Asset Classes ◽  
International Investors

AbstractThis article examines whether international investors benefit from adding real estate investment trusts (REITs) to a mixed asset portfolio consisting of global stocks, bonds, hedge funds, and commodities. Previous literature has shown that REITs provide a strong co-movement with direct real estate in the long run. We therefore test the diversification potential of international REITs within the strategic asset allocation. Using the Johansen cointegration technique, we show that there is no long-term co-movement between REITs and the other asset classes in the period from January 1990 to December 2009. Thus, the empirical evidence suggests that REITs improve the diversification potential for active investors and those with a long-term investment horizon by simultaneously generating continuous cash flows.

The real alternative? A comparison of German real estate returns with bonds and stocks

2018 ◽  
Vol 36 (1) ◽  
pp. 19-31 ◽  
Author(s):  
Nikodem Szumilo ◽  
Thomas Wiegelmann ◽  
Edyta Łaszkiewicz ◽  
Michal Bernard Pietrzak ◽  
Adam P. Balcerzak
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Stock Returns ◽  
Asset Allocation ◽  
The Other ◽  
Property Market ◽  
Direct Evaluation ◽  
Content Type ◽  
Real Estate Returns ◽  
Asset Classes

Purpose The purpose of this paper is to evaluate how real estate returns behaved over the last two decades in relation to the other two asset types. This allows a direct evaluation of how investors make allocation choices and perceive risks and rewards offered by properties in the context of changing market conditions. Design/methodology/approach A de-smoothed MSCI index is used to reflect direct property returns and control for both income and capital returns within it. Indirect property returns are approximated by the RX Real Estate index. By supplementing this data with an analysis of trends in both space and capital markets it is possible to relate investor behavior to events affecting other assets. Findings It is possible to identify three distinctive periods characterized by different correlation of returns and behavior of investors: before the crisis of 2008, the crisis period between 2008 and 2012 and recovery afterwards. These appear to have corresponded to different stages of the economic cycle. Interestingly, performance of asset classes has also differed over that period suggesting that at different points in the cycle asset allocation decisions may have been made differently. Practical implications It appears that as investments over the last 15 years real assets in Germany behaved similarly to bonds. It is possible that this phenomenon was driven by an aversion to the stock market and its associated risk which became a concern after the financial crisis of 2008. Over the downturn that followed the market shock investors appear to have turned to assets with simpler risk profiles like direct real estate and government debt. On the other hand, the correlation between direct property investment index and stock returns has been found to be small but negative. This shows not only that the two asset classes were often driven by different factors but also suggests that diversification was, at least theoretically, possible. Originality/value Direct real estate investment returns have repeatedly been found to exhibit characteristics similar to those found in bond as well as equity markets (Eichholtz and Hartzell, 1996; Clayton and MacKinnon, 2003) but little research examines the correlation between returns offered by those asset classes in a mature financial and property market. In addition, the recent financial crisis provided a dynamically changing investment which is ideal for investigating structural relationships between assets.

scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (3) ◽  
pp. 287-324
Author(s):  
J. Andrew Hansz ◽  
◽  
Wikrom Prombutr ◽  
Ying Zhang ◽  
Tingyu Zhou ◽  
...  
Keyword(s):  
Real Estate ◽  
Causal Relation ◽  
Equity Market ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Equity Reits ◽  
Market Factor

We investigate the long- and short-term interrelationships between equity and mortgage real estate investment trusts (REITs) by focusing on decomposed income and appreciation components. We find that the previously documented long-term cointegration relation between equity and mortgage REIT prices stems exclusively from their income components and subsequently, the appreciation components contribute nothing to such a long-term relationship. We also find that the previously documented short-term causal relation between equity and mortgage REIT returns is due to the causality that runs from the appreciation returns of equity REITs to those of mortgage REITs while their income returns do not lead to causality. Lastly, we show that the income returns of both equity and mortgage REITs are influenced by the same equity market factor while their appreciation returns are responsive to different macroeconomic factors, which explain the heterogeneous performance between them.

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