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Asset-based indexes for timberland investment performance are new, and timberland's potential role in institutional portfolios is limited to studies which use synthetic indexes. There is also little historical evidence to suggest whether timber should play a "persistent" role in portfolios over short- and long-term time horizons. This study used an asset-based benchmark in a modern portfolio theory context to examine timberland's role in asset allocation decisions. A determination was also made to see if positive timberland allocations persist over rolling time periods ranging from 5 to 15 years. Returns and risks of portfolios with and without timberland were generated and compared over these periods.
Fiscal Year: fy98 ·
Problem Area: pa98-1 ·
Theme: cctrgnas ·
Source: extra
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Forest Economics and Policy |
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USDA Forest Service Southern Research Station |