The Q Theory of Investment, the Capital Asset Pricing Model and Real Estate Valuation: A Synthesis

Authors: John F. McDonald

Start Page: 269
End Page: 286
Volume: 13
Issue Number: 3
Year: 2005
Publication: Journal of Real Estate Literature

Abstract: This paper combines Tobin’s Q theory of real investment with the capital asset pricing
model to produce a new and relatively simple procedure for the valuation of real
estate assets using the income approach. Applications of the method are provided.