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Abstract

This study considers the impact of adding real estate investment trust (REIT) stocks to stock portfolios in varying proportions under different economic conditions. To the extent real estate offers diversification benefits to stock market investors, REITs may serve as a practical alterative to the relatively high trading costs of direct equity positions in real estate investments. The results suggest that the inclusion of securitized real estate enhances portfolio pe1jormance during positive economic climates, but diminishes portfolio pe1jormance during negative economic climates.

Volume

2

Issue

1

First Page

1

Last Page

8

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