Risk and Return Comparison of MBS, REIT, and Non-REIT Etfs
School of Business
Department/School (additional, if any)
MBS has become an investment instrument of choice for retiring individuals and the ones who have preference for a secure stream of returns while taking lower risk relative to other vehicles of investment. As well, MBS has lately become a recommended investment strategy by financial advisers and investment bankers for safeguarding the retirement accounts of retirees from wild market fluctuations. The objective of this paper is to compare the risk and return of MBS with REIT and Non-REIT investment opportunities. The paper uses finance ratios such as Sharpe, Sortino, and Traynor ratios as well as market risk and value at risk (VaR) analysis to compare and contrast the relative risk and return of a number equities in MBS, REIT and Non-REIT. The study extends the analysis to pre-recession of 2007-2009 to analyze the effect of the great recession on the relative risk and return of three different mediums of investment.
International Journal of Business, Humanities and Technology