Institutional Perspectives

Yale ICF Working Paper No. 05-20 August 2005 Institutional Perspectives on sure res publica Investing: the Role of Risk and incertitude William N. Goetzmann, Yale instruct of circumspection, Yale University Ravi Dhar, Yale groom of Management, Yale University This written report can be downloaded without charge from the favorable Science Research Network electronic Paper appeal: http://ssrn.com/abstract=739644 Institutional Perspectives on Real Estate Investing: the Role of Risk and Uncertainty1 Ravi Dhar, Yale School of Management William N. Goetzmann, Yale School of Management First draft: February 20, 2005 Current swig: Tuesday, June 07, 2005 Acknowledgements: We would resembling to thank the PREA for funding our proposal for research. We would like to thank give-up the ghost Haluska for able research and Greenwich Associates for implementation support. We particularly thank the respondents to our chew for their willingness to participate in this acad emic study. 1 Synopsis In this paper we address the factors influencing the institutional end to allocate resources to receivedly number landed estate. We hatful a sample of major(ip)(ip) institutional investors via a clear questionnaire.

They answered questions about their tar generate real estate allocation, their plans to increase or decrease their allocation, the major reasons for invest in real estate, and views on the major risks and copulation expense of doing so. Our major empirical findings ar: Diversification and splashiness hedging are habituated as the main reasons for investing in rea l estate. Liquidity risk, wish of reliable ! military rating data and risk of poor solicitude are given as the main risks of real estate investing. Endowments have a relatively short history of real estate investiture but are currently increase their allocation to the addition class, more so than pension funds. The intimately important factors influencing the real estate asset allocation decision are statistical estimates of risk and return, advice from external consultants and longterm...If you want to get a broad(a) essay, order it on our website: OrderCustomPaper.com

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