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Scenario Analysis In The Calculation Of Investment Efficiency–The Problem Of Formulating Assumptions

Scenario Analysis In The Calculation Of Investment Efficiency–The Problem Of Formulating Assumptions Abstract This article concerns the problem of formulating assumptions in scenario analysis for investments which consist of the renting out of an apartment. The article attempts to indicate the foundations for the formulation of assumptions on the basis of observed retrospective regularities. It includes theoretical considerations regarding scenario design, as well as the results of studies on the formulation, in the past, of quantities which determined or were likely to bring closer estimate the value of the individual explanatory variables for a chosen measure of investment profitability (MIRR FCFE ). The dynamics of and correlation between the variables were studied. The research was based on quarterly data from local residential real estate markets in Poland (in the six largest cities) in the years 2006 – 2014, as well as on data from the financial market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Real Estate Management and Valuation de Gruyter

Scenario Analysis In The Calculation Of Investment Efficiency–The Problem Of Formulating Assumptions

Real Estate Management and Valuation , Volume 23 (3) – Sep 1, 2015

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Publisher
de Gruyter
Copyright
Copyright © 2015 by the
ISSN
2300-5289
eISSN
2300-5289
DOI
10.1515/remav-2015-0025
Publisher site
See Article on Publisher Site

Abstract

Abstract This article concerns the problem of formulating assumptions in scenario analysis for investments which consist of the renting out of an apartment. The article attempts to indicate the foundations for the formulation of assumptions on the basis of observed retrospective regularities. It includes theoretical considerations regarding scenario design, as well as the results of studies on the formulation, in the past, of quantities which determined or were likely to bring closer estimate the value of the individual explanatory variables for a chosen measure of investment profitability (MIRR FCFE ). The dynamics of and correlation between the variables were studied. The research was based on quarterly data from local residential real estate markets in Poland (in the six largest cities) in the years 2006 – 2014, as well as on data from the financial market.

Journal

Real Estate Management and Valuationde Gruyter

Published: Sep 1, 2015

References