April 1997, Vol 22, No 1
Abstract: This article uses the NCREIF data to explore the implications of historic patterns of real estate and stock and bond returns regarding optimal real estate allocations in mixed-asset portfolios for alternative holding periods. Its major finding is that medium-term investors with at least moderate risk concerns and long-term investors with serious risk concerns should have included real estate in their portfolios for most of the past 18 years.