Why future house price appreciation is the most important factor in housing as an investment

Download
Options
Translate

Contributed Content (0)

Ask a Question

 
Show 1 Answer (Answer provided by Arnold Kling)
user's picture

One way to evaluate investments is to use the Capital Asset Pricing Model (CAPM).  This is beyond the scope of this course.  However, CAPM leads to a view that one should invest some of your wealth in a risk-free asset and the rest in a diversified "market portfolio."  The latter would include a diversified portfolio of real estate, but not buying your own home.

Please register or login to answer a question
 
user's picture
Please register or login to ask a question