Proper

Abstract

The purpose of this study is to analyze using CAPM whether investing in apartments can be a hedge against expected and unexpected inflation. The result of the analysis is as follows. First, for apartments, with the regression coefficient of unexpected inflation of 2.779, greater than 1, and the t-value as high as 2.142, the result indicates investing in apartments can be a perfect hedge at the 1% significance level, but that of expected inflation is not significant. Second, when it comes to hotels and commercial financial mortgages, the regression coefficient value of unexpected inflation is positive (+), but it is statistically insignificant due to the low t-value for expected and unexpected inflation. Third, Dow Jones stocks cannot provide an inflation hedge as their regression coefficient value for expected and unexpected inflation is negative (-) and the t-value is also low.