Investment Decisions on Illiquid Assets: A Search Theoretical Approach to Real Estate Liquidity by Jaroslaw MorawskiInvestment Decisions on Illiquid Assets: A Search Theoretical Approach to Real Estate Liquidity by Jaroslaw Morawski

Investment Decisions on Illiquid Assets: A Search Theoretical Approach to Real Estate Liquidity

byJaroslaw MorawskiForeword byProf. Dr. Heinz Rehkugler

Paperback | December 11, 2008

Pricing and Purchase Info

$153.30 online 
$180.95 list price save 15%
Earn 767 plum® points

Prices and offers may vary in store

Quantity:

In stock online

Ships free on orders over $25

Not available in stores

about

The Portfolio Selection Model developed by Markowitz in the 1950s offers a theore- cally founded approach to combining securities into a utility-optimizing investment portfolio, that is, a portfolio leading to the best possible trade-off between the expected return and investment risk. However, when applied in practice, the model often rea- es its limits as soon as certain central assumptions are not fulfilled. This holds es- cially for the assumption of perfect liquidity of all assets in the portfolio, that is, the ability of selling or buying any of these assets at any time immediately and without influencing its market price. A serious additional source of investment risk may arise when no organized and centralized market for a specific asset exists that would d- close the currently prevailing price level, and when the valuations of the asset differ strongly among market participants. Examples of such assets characterized by limited liquidity and valuations' heterogeneity are direct real estate investments, private eq- ty, and many other privately traded goods. A number of rather simple extensions to the Markowitz model allowing for listed - curities with limited liquidity have been developed to date. They are usually based on a price discount due to the lacking ability of an immediate sale. The work of Mora- ki, however, goes further and offers a complex model of market participants' behavior on illiquid markets with heterogeneous expectations.
Dr. Jaroslaw Morawski promovierte bei Prof. Dr. Heinz Rehkugler am Lehrstuhl für Finanzwirtschaft und Banken der Universität Freiburg. Er ist als Immobilien-Researcher bei RREEF Alternative Investments tätig.
Loading
Title:Investment Decisions on Illiquid Assets: A Search Theoretical Approach to Real Estate LiquidityFormat:PaperbackDimensions:472 pagesPublished:December 11, 2008Publisher:Gabler VerlagLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:383491004X

ISBN - 13:9783834910042

Look for similar items by category:

Reviews

Table of Contents

The concept of liquidity, search in illiquid markets, liquidity measurement, liquidity as a decision criterion, liquidity of German condominium markets

Editorial Reviews

Die Arbeit wurde mit dem gif Immobilien-Forschungspreis 2008 ausgezeichnet.