The Effect of Adding Real Estate Stocks on Portfolios- U.K. market

• Main Authors: Chieh-Yin Hsu, 徐潔茵
• Other Authors: Ming-Long Lee
• Format: Others
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/e9muh9

碩士 === 國立東華大學 === 財務金融學系 === 100 === The purpose of the paper is to determine whether REITs or real estate stocks are good investment vehicles for individual investors who have their own houses. In this study, we use mean-variance analysis and diversification and return benefit method. First, mean-variance analysis can get the optimal allocation to financial instrument which investor own . Second, diversification and return benefits can analysis whether REITs and real estate stocks are return enhancer, diversifier, or both to investor who consider family houses into their portfolio? Due to the financial crisis, we split sample to discuss whether the financial crisis affects the portfolio optimal allocation and the role of REITs and real estate stocks in portfolio? The results show that REITs are good investment to investors who consider family house to their portfolio and real estate stocks are appropriate investment to investors who don’t consider their houses to portfolio. Adding REITs or real estate stocks can improve portfolio diversification benefits .We also analysis the subsample and find REITs and real estate stocks adding to portfolio can get diversification benefits.