北京大学光华商学院国际财务管理3.ppt

Theory and Practice of International Financial Management Translation and Transaction Exposure Theory and Practice of International Financial Management Economic Exposure Theory and Practice of International Financial Management Assessing the Risk ofForeign Exchange Exposure Theory and Practice of International Financial Management Tools for Hedging Exchange Rate Risk Theory and Practice of International Financial ManagementForeign Exchange Risk Management Alternative Investments Chapter 29 Real Estate Types of real estate investments Residences—make up more than 60% of total market value of real estate in the U.S. Business real estate—includes office buildings, apartment buildings, hotels, shopping centers Farms—usually owned by the farmers operating them Real estate investment trusts (REITs)—investment portfolios patterned after closed-end investment companies Returns From Real Estate Investments Returns From Real Estate Investments Returns are derived from appraised real estate values which involve a smoothing process Appraisers who are value estimators tend to smooth out temporary problems Causes lower SD and high correlations Returns From Real Estate Investments From 1972-1999 all categories of real estate investments had mean returns SP500, a small cap index, and a commodity futures index Example: Buying a Single-Family Residence Given information: If you were to purchase a $150,000 house with a $30,000 down payment and finance the remainder with a 30-year 8% loan Your monthly payments would be $880 Example: Buying a Single-Family Residence Your monthly budget might be: Mortgage $880 Real Estate taxes $203 Utilities $160 Home insurance $40 Repairs and upkeep $120 Total $1403 Your monthly savings might be: Income tax reduction $300 Price appreciation $500 Equity accumulation $83 Total $883 Disadvantages of Real Estate Investing Large idiosyncratic risks Represents a large portion of investor’s total portfolio High costs of acquiring i