Asset allocation versus entrepreneurial decisions in real estate investment

Although the application of capital market theory is questionable in real estate investment,many institutional investors still perform asset allocation with historic real estate data.Entrepreneurial investment analysis relies on a different information setting. To date it isunclear which approach, or what data set, offers the most efficient solutions for the use ofcapital. In order to evaluate policy recommendations for decision making in pension fund realestate investment, we describe an empirical investigation of the investment environment inGermany...