A macro-economic indicator-based risk management strategy for the small property investor

Autor:	Collins Ogutu Miruka, Alfred Talukhaba, Jan H. Steenkamp
Rok vydání:	2012
Předmět:	Finance business.industry Financial risk Investment (macroeconomics) General Business Management and Accounting Microeconomics Economic indicator Economics Portfolio Cash flow Performance measurement business General Economics Econometrics and Finance Risk management Modern portfolio theory
Zdroj:	International Journal of Economics and Business Research. 4:374
ISSN:	1756-9869 1756-9850
DOI:	10.1504/ijebr.2012.047418
Popis:	It is generally believed that the principles of modern portfolio theory (MPT) may be applicable to small direct property investments, to formulate an investment risk management strategy, which is embedded in the conceptual stages of the investment and thus reduce the reliance on often, ineffective, active management and remedial strategies during the holding period. The main obstacle, however, is that the application of MPT requires an industry benchmark or index, which is representative of the market and against which performance may be measured. This paper investigates the possibility of deriving an investment-specific benchmark or a hypothetical return curve based on the relationships that exist between the macro-economy and the property market. This would make it possible for small property investors to apply the risk management principles inherent to portfolio investing and incorporate these principles in the feasibility cash flows of small direct property investments.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::4fcb6087db514f80021196c929c0524f https://doi.org/10.1504/ijebr.2012.047418 Zobrazit plný text záznamu