ABSTRACT
T h e s e c o n d h a l f o f th e tw e n t ie th c e n tu r y h as seen a r e m a r k a b le v a r ie ty o f ev e n ts — ev e n ts th a t h a v e a f fec ted eve ry U n i te d S ta te s c a p i ta l m a r k e t as well as o th e r in s t i tu t io n s . P r o m i n e n t a m o n g th e effect o f ev en ts o n c a p i ta l m a r k e t s h as b ee n th e g r e a t r ise in rea l e s ta te v a lu e s in th e la s t th r e e d ec ad e s . F r o m 1947 to 1982, a g e n e ra l in d e x o f real e s ta te to ta l r e tu r n s in c re a se d a p p r o x im a te ly s e v e n te e n fo ld , r e p re s e n t in g a c o m p o u n d a n n u a l r a te o f r e tu r n o f 8 .3% . T h is r e su l t is f o r u n le v e ra g e d rea l es ta te . M o s t in v e s to r s held leveraged rea l e s ta te a n d h a d ev en h ig h e r r e tu rn s .
