Eres : Digital Library : Works

Paper eres2008_135:
ANALYSIS AND BENEFITS OF MARKET SEGMENTATION ON PORTFOLIO MANAGEMENT

id eres2008_135
authors Diaz, Roberto Martinez
year 2008
title ANALYSIS AND BENEFITS OF MARKET SEGMENTATION ON PORTFOLIO MANAGEMENT
source Book of Abstracts: 15th Annual European Real Estate Society Conference in Kraków, Poland
summary Real Estate investors rely on the diversification of their portfolios as a tool to reduce the volatility of their portfolio’s performance. Diversification is the principal tool of Harry Markowitz’s Modern Portfolio Theory (MPT). Diversification achieves reductions in the total portfolio risk by means of small reductions in the returns when combining risky assets together. However, property assets are ‘rara avis’, their behaviour is idiosyncratic unlike other financial assets. Market Segmentation is a technique to achieve diversification by means of gathering together those assets sharing a similar performance. This gathering of similar assets maximises the variance present across the different segments of the market while minimising the variance of the individual asset’s returns within the segments.
series ERES:conference
email roberto.diaz@ipd.com
discussion No discussions. Post discussion ...
ratings
session A1
last changed 2008/11/26 14:05
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