Open AccessRisk Reduction Possibilities From Diversification Of Real Estate Portfolios
Author(s) -
Hans R. Isakson,
Thomas H. McInish
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v8i1.6185
Subject(s) - diversification (marketing strategy) , real estate , macro , business , estate , financial economics , economics , finance , actuarial science , computer science , marketing , programming language
Using a macro data base not previously examined, this paper investigates the benefits of diversification in real estate portfolios. Results support the findings of Burns and Epley (1982) and Miles and McCue (1984) that large reduction in risk can be achieved by intra regional diversification. But contrary to some previous work, substantial benefits from interregional diversification are also indicated.