Leverage and real estate investment in mixed-asset portfolios

From: Journal of Real Estate Portfolio Management | Date: January 1, 1998| Author: | Copyright information

Executive Summary. Academics examining real estate's potential to improve the efficiency of mixed-asset portfolios usually view the situation from the perspective of the debtfree equity investor This study investigates the implications for portfolio performance of holding leveraged real estate. Of particular interest is the effect of including leveraged real estate in portfolios held by nontaxable institutions. To investigate these effects, a bootstrap estimate with a Markowitz mean-variance analysis is used to generate efficient portfolio frontiers from annual investment performance data ...

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