Institutional Portfolios: Diversification through Farmland Investment
证明农田能提升以股票、债券和商业地产为主的机构投资组合的整体表现，并修正了基于评估的农田收益中的平滑偏差，使用改进的收益度量来估计最优投资组合。
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.