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Portfolio Diversification and Return Benefits--Common Stock vs. Real Estate Investment Trusts (REITs)

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Abstract

This research examines the effects of diversification on the reduction of total portfolio risk in real estate investment trusts (REITs) and mixed-asset portfolios. In addition, overall performance measures are calculated and compared among REIT, common stock, and mixed-asset portfolios.

Suggested Citation

  • James L. Kuhle, 1987. "Portfolio Diversification and Return Benefits--Common Stock vs. Real Estate Investment Trusts (REITs)," Journal of Real Estate Research, American Real Estate Society, vol. 2(2), pages 1-9.
    • Handle: RePEc:jre:issued:v:2:n:2:1987:p:1-9
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    References listed on IDEAS

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    1. Fisher, Lawrence & Lorie, James H, 1970. "Some Studies of Variability of Returns on Investments in Common Stocks," The Journal of Business, University of Chicago Press, vol. 43(2), pages 99-134, April.
    2. Friedman, Harris C., 1971. "Real Estate Investment and Portfolio Theory," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 6(2), pages 861-874, March.
    3. David Hartzell & John Hekman & Mike Miles, 1986. "Diversification Categories in Investment Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 230-254, June.
    4. Mike Miles & Tom Mc Cue, 1982. "Historic Returns and Institutional Real Estate Portfolios," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(2), pages 184-199, June.
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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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