| The real estate industry has become one of the most important industries in China. Due to the continuously fast development of national economy the real estate industry foresees its bright future. However, with the national regulations being strengthened and the competition within the real estate industry heated, it becomes of vital importance for the investors to avert risks to obtain the anticipated return.Based on the analyses of different types of the real estate, the paper intends to apply the investment portfolio theory into this field to make it clear that the type-based investment portfolio is more effective than the investment in just one type of the real estate in risk reduction and obtainment of the anticipated return. The research of this paper covers the following aspects:Firstly, the investment portfolio theory of the real estate is introduced, including the measurement of risks and returns of the real estate, Markowitz Model, Capital Asset Pricing Model, Arbitrage Pricing Model, Single Index and Multi-index Model. Secondly, the real estate is classified into land, house, offices, and commercial use, industrial use and other property use types. Then the detailed analysis of each type is given.Thirdly, the optimization model of real estate investment portfolios is established, including Mean-variance Model and Single Index Model. In addition, various solutions to these models are researched.Finally, through the case analysis, the efficiency of the type-based real estate investment portfolio is elaborated.The investment portfolio in real estate is both scientific and feasible, thus will become the tendency of real estate investment. It is also of great significance for the investors to avert risks and obtain the anticipated return in the real estate investment. |
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