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| Risk and Real Estate Investment: An
International Perspective Author: Tom G. Geurts and Austin J. Jaffe Start Page: 117 Abstract: The literature
regarding portfolio analysis for institutional real estate investors has until now largely
been concerned with benefits associated with naive diversification strategies. In this
paper, we discuss the prospects that institutional characteristics suggest for risk
reduction in internationally diversified portfolios. The risk/return relationship of each
country is affected by its own unique institutional environment and therefore there are
potential benefits for investors. We argue that, given the significant differences in the
institutional framework across countries, there are likely impacts on returns and that
this fact deserves the attention of institutional investors. |
