Aims to re‐examine the role that can be played by real estate in Swiss mixed‐asset portfolios. For this purpose, constructs a constant quality price index for apartment buildings in Geneva. Also uses data pertaining to real estate mutual funds. In real terms, and after taking into account the illiquidity of real estate, the results suggest that the optimal portfolio composition is 20 per cent for stocks, 53 per cent for bonds and 27 per cent for real estate. Real estate mutual funds could also be included in a small proportion in the portfolio.
Hoesli, M. and Hamelink, F. (1996), "EUROPEAN PAPER: Diversification of Swiss portfolios with real estate, Results based on a hedonic index", Journal of Property Valuation and Investment, Vol. 14 No. 5, pp. 59-75. https://doi.org/10.1108/14635789610154299Download as .RIS
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