Paper, Order, or Assignment Requirements
“Critically review the case for adding real estate to a mixed asset portfolio, drawing on the literature on the question and your own interpretation of the UK returns data provided.A short introduction can be found in Baum & Hartzell, Global Real Estate Strategies, Chapter 1.
A selection of relevant articles is in the “Reading & Resources” folder in Moodle. It is not required that your analysis uses methods as complex / sophisticated as those used in the papers, but your answer should show an awareness of the key techniques such as real estate Index smoothing and mean variance portfolio allocation methods. There are many other articles and industry reports on the topic you can also look at.
You are asked to use the data on UK assets: all the figures with some gadgets you might want to use are in the “UK Asset Returns and Portfolio Allocation” spreadsheet. Your use of the data can be as simple as a couple of charts or tables, or more advanced if you feel confident in your quantitative skills.
Note the question asks for a “critical” review. A good answer will go beyond a simple recital of previous work with a couple of charts, and will include your own interpretation and opinions.