Does Money Grow on Trees?: The Diversification Properties of U.S. Timberland Investments
Does Money Grow on Trees?: The Diversification Properties of U.S. Timberland Investments
Scholtens, L. J. R.,; Spierdijk, Laura.
2012-04-04 00:00:00
This paper quantifies the diversification potential of timberland investments in a meanvariance framework. The starting point is a broad set of benchmark assets represented by various indexes. Including publicly traded timberland investments in the portfolio does not significantly increase meanvariance efficiency. At first sight, U.S. private equity timberland seems to improve the mean-variance frontier, even if the portfolio already contains a forestry and paper equity index. However, after removing the appraisal smoothing bias from the raw timberland data, there is much less evidence that private equity timberland investments increase mean-variance efficiency.
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngLand EconomicsUniversity of Wisconsin Presshttp://www.deepdyve.com/lp/university-of-wisconsin-press/does-money-grow-on-trees-the-diversification-properties-of-u-s-eUcYM5Pk0v
Does Money Grow on Trees?: The Diversification Properties of U.S. Timberland Investments
This paper quantifies the diversification potential of timberland investments in a meanvariance framework. The starting point is a broad set of benchmark assets represented by various indexes. Including publicly traded timberland investments in the portfolio does not significantly increase meanvariance efficiency. At first sight, U.S. private equity timberland seems to improve the mean-variance frontier, even if the portfolio already contains a forestry and paper equity index. However, after removing the appraisal smoothing bias from the raw timberland data, there is much less evidence that private equity timberland investments increase mean-variance efficiency.
To get new article updates from a journal on your personalized homepage, please log in first, or sign up for a DeepDyve account if you don’t already have one.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.