The Application Of Portfolio Theory In The Real Estate Field

This paper is committed to the introduction of real estate investment portfolio theory. First, the paper details the mean-variance model of investment portfolio theory, CAPM model, the single-exponential model, and introduced the modern portfolio theory of systemic risk, unsystemic risk, effective frontier theory, Modern portfolio theory is the introduction of the theoretical groundwork done.The article details on the domestic and foreign real estate investment portfolio theory research and development. Highlights of the foreign scholars on the type of property investment decentralized effect of geographical diversification of the empirical research results. Overseas studies suggest: decentralization of investment in real estate field promising. And the research of modern portfolio theory model used in the real estate field, for the real estate investment portfolio theory make a significant contribution.After introduction of modern portfolio theory, and its application to the real estate investment field. The article introduced in the real estate investment portfolio model: the mean variance model, and the CAPM, Single index model based on the measure of a portfolio investment model,as well as the solution.Finally this paper, the empirical analysis of geographical diversification strategy, by property type decentralization strategy with a single investment and property types decentralized strategy, the comparison and the mean variance model for the empirical study. And concludes that, regardless of geographical diversification strategy, or property types decentralized approach is stronger than a single investment. And the mean variance model can be applied to the real estate.