A Performance Comparison between Dwellings and Financial Assets in Israel

Danny Ben-Shahar

Journal of Real Estate Literature, 2003, vol. 11, issue 2, 177-194

Abstract: Focusing on Israeli data from January 1990 to December 2000, this study finds that the annual average return on a diversified investment in stocks is approximately two and four times greater than that on diversified dwelling and bond portfolios, respectively. When considering the embedded risk, however, the dwelling portfolio is found to generally outperform the stock and bond investments. The dwelling portfolio is also found to substantially reduce the risk embedded in the optimal investment portfolio. Moreover, additional diversification with the S&P 500 Index generates further considerable expansion of the efficient frontier. Finally, in contrast to the other asset portfolios, the dwelling portfolio provides a highly positive hedge against actual, expected and unexpected inflation.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2003.12090124 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjelxx:v:11:y:2003:i:2:p:177-194

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjel20

DOI: 10.1080/10835547.2003.12090124

Access Statistics for this article

Journal of Real Estate Literature is currently edited by Sophia Dermisi and Kimberly Winson

More articles in Journal of Real Estate Literature from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().