publication . Article . 2006

The Role of Agribusiness Assets in Investment Portfolios

Johnson, Michael; Malcolm, Bill; O'Connor, Ian;
Open Access
  • Published: 01 Jan 2006
Abstract
Investment in agribusiness assets has grown significantly in recent years. The question of interest is whether including agribusiness assets in investment portfolios provide benefits. The effects of diversification by including agribusiness assets in two investment portfolios, a mixed asset portfolio and a diversified share portfolio was investigated using Markowitz’s (1952) Modern Portfolio Theory (MPT) of mean-variance optimization. To measure the performance of agribusiness assets, an index of agribusiness companies listed on the Australian Stock Exchange was used. The results of the study suggested that agribusiness assets provided some diversification ben...
Subjects
free text keywords: Agribusiness assets, investment portfolios, mixed asset portfolio, diversified share portfolio, Markowitz's Modern Portfolio Theory, mean variance optimization, MPT, Australian Stock Exchange, ASX, Agribusiness, Agricultural Finance, Farm Management, Production Economics, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession, ISSN 1442-6951,

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