TY - JOUR
T1 - Institutional Portfolios
T2 - Diversification through Farmland Investment
AU - Lins, David A.
AU - Sherrick, Bruce J.
AU - Venigalla, Aravind
PY - 1992/12
Y1 - 1992/12
N2 - This article demonstrates that farmland can enhance the overall performance of institutional portfolios which are currently dominated by stocks, bonds, and business real estate. Unlike previous articles on farmland returns, this article addresses the issue of “smoothing bias” associated with appraisal‐based farmland returns. Improved measures of income returns to farmland are also used in developing the estimates of optimal portfolios. Parametric testing revealed that farmland continues to enter the optimal portfolios even for large increases in the variance or for large reductions in the annual returns to farmland.
AB - This article demonstrates that farmland can enhance the overall performance of institutional portfolios which are currently dominated by stocks, bonds, and business real estate. Unlike previous articles on farmland returns, this article addresses the issue of “smoothing bias” associated with appraisal‐based farmland returns. Improved measures of income returns to farmland are also used in developing the estimates of optimal portfolios. Parametric testing revealed that farmland continues to enter the optimal portfolios even for large increases in the variance or for large reductions in the annual returns to farmland.
UR - http://www.scopus.com/inward/record.url?scp=84983972028&partnerID=8YFLogxK
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U2 - 10.1111/1540-6229.00596
DO - 10.1111/1540-6229.00596
M3 - Article
AN - SCOPUS:84983972028
SN - 1080-8620
VL - 20
SP - 549
EP - 571
JO - Real Estate Economics
JF - Real Estate Economics
IS - 4
ER -