Alternatives for Assessing Risk in Real Estate Investments

  • December 22, 1981
  • • Written by: Richard J. Curcio James P. Gaines James R. Webb

Fall/Winter 1981, Vol 6, No 2

Abstract: Past treatment of risk in real estate investment has involved the use of intuitive techniques such as adjusting the discount rate or the anticipated cash flows and mean-variance, sensitivity analysis and the use of dispersion measures of investment return probability distribution. This study explores the reasons for and possible use of alternatives for assessing risk such as semi-variance, skewness/kurtosis and stochastic dominance.