Substitutability between Equity REITs and Mortgage REITs

This study extends Seck’s (1996) approach to investigate the degree of substitutability between equity real estate investment trusts (EREITs) and mortgage real estate investment trusts (MREITs). The variance ratio test and the variance decomposition of forecast errors yield results indicating the existence of informational commonality between EREITs and MREITs. The findings indicate that the two types of REITs are substitutable. A direct implication is that investors who believe they have superior forecasting ability will be indifferent to invest in either type of REIT. Another implication is that REITs can be treated as a single asset class in constructing a diversified multi-asset portfolio.

Chasing housing prices: Working paper series--06-08

If a person or organization is planning to buy real estate in the future but is unable or unwilling to buy it now, how can they best "hedge" this purchase? In what class of asset should they invest their money until they are ready to purchase the real estate? This paper uses Monte Carlo simulation and bootstrap techniques to help answer these questions. We find that the best "purchase early" hedge for both residential and commercial real estate is small value stocks. Small value stocks would be the most likely to provide returns at least as good as real estate and they would be least likely to suffer losses relative to real estate. The effectiveness of the hedge increases the longer the time horizon of the investor. Large value stocks and equity REITs are also quite good but not as good as small value stocks. Other asset classes are not nearly as effective. The least effective asset class is T-Bills

Chasing Housing Prices?

If a person or organization is planning to buy real estate in the future but is unable or unwilling to buy it now, how can they best “hedge” this purchase? In what class of asset should they invest their money until they are ready to purchase the real estate? This paper uses Monte Carlo simulation and bootstrap techniques to investigate the effectiveness of using traditional asset classes in managing the long-term risks associated with the future purchase of real estate. We find that the best “purchase early” hedge for both residential and commercial real estate is small value stocks. Small value stocks would be the most likely to provide returns at least as good as real estate and they would be least likely to suffer losses relative to real estate. The effectiveness of the hedge increases the longer the time horizon of the investor. Large value stocks and equity REIT’s are also quite good but not as good as small value stocks. Other asset classes are not nearly as effective. The least effective asset class is T-Bills

A Two-Step Quantum Direct Communication Protocol Using Einstein-Podolsky-Rosen Pair Block

A protocol for quantum secure direct communication using blocks of EPR pairs is proposed. A set of ordered $N$ EPR pairs is used as a data block for sending secret message directly. The ordered $N$ EPR set is divided into two particle sequences, a checking sequence and a message-coding sequence. After transmitting the checking sequence, the two parties of communication check eavesdropping by measuring a fraction of particles randomly chosen, with random choice of two sets of measuring bases. After insuring the security of the quantum channel, the sender, Alice encodes the secret message directly on the message-coding sequence and send them to Bob. By combining the checking and message-coding sequences together, Bob is able to read out the encoded messages directly. The scheme is secure because an eavesdropper cannot get both sequences simultaneously. We also discuss issues in a noisy channel.Comment: 8 pages and 2 figures. To appear in Phys Rev

Controlled order rearrangement encryption for quantum key distribution

A novel technique is devised to perform orthogonal state quantum key distribution. In this scheme, entangled parts of a quantum information carrier are sent from Alice to Bob through two quantum channels. However before the transmission, the orders of the quantum information carrier in one channel is reordered so that Eve can not steal useful information. At the receiver's end, the order of the quantum information carrier is restored. The order rearrangement operation in both parties is controlled by a prior shared control key which is used repeatedly in a quantum key distribution session.Comment: 5 pages and 2 figure

The quantum cryptographic switch

We illustrate using a quantum system the principle of a cryptographic switch, in which a third party (Charlie) can control to a continuously varying degree the amount of information the receiver (Bob) receives, after the sender (Alice) has sent her information. Suppose Charlie transmits a Bell state to Alice and Bob. Alice uses dense coding to transmit two bits to Bob. Only if the 2-bit information corresponding to choice of Bell state is made available by Charlie to Bob can the latter recover Alice's information. By varying the information he gives, Charlie can continuously vary the information recovered by Bob. The performance of the protocol subjected to the squeezed generalized amplitude damping channel is considered. We also present a number of practical situations where a cryptographic switch would be of use.Comment: 7 pages, 4 Figure

Effects of Noisy Oracle on Search Algorithm Complexity

Grover's algorithm provides a quadratic speed-up over classical algorithms for unstructured database or library searches. This paper examines the robustness of Grover's search algorithm to a random phase error in the oracle and analyzes the complexity of the search process as a function of the scaling of the oracle error with database or library size. Both the discrete- and continuous-time implementations of the search algorithm are investigated. It is shown that unless the oracle phase error scales as O(N^(-1/4)), neither the discrete- nor the continuous-time implementation of Grover's algorithm is scalably robust to this error in the absence of error correction.Comment: 16 pages, 4 figures, submitted to Phys. Rev.

Bhabha Scattering with Radiated Gravitons at Linear Colliders

We study the process e+- e- -> e+- e- +- missing energy at a high-energy e+- e- collider, where the missing energy arises from the radiation of Kaluza-Klein gravitons in a model with large extra dimensions. It is shown that at a high-energy linear collider, this process can not only confirm the signature of such theories but can also sometimes be comparable in effectiveness to the commonly discussed channel e+- e- -> gamma +- missing energy, especially for a large number of extra dimensions and with polarized beams. We also suggest some ways of distinguishing the signals of a graviton tower from other types of new physics signals by combining data on our suggested channel with those on the photon-graviton channel.Comment: 16 pages, LaTex, 8 figures embedded, typos, report no and references correcte

Analysis of Generalized Grover's Quantum Search Algorithms Using Recursion Equations

The recursion equation analysis of Grover's quantum search algorithm presented by Biham et al. [PRA 60, 2742 (1999)] is generalized. It is applied to the large class of Grover's type algorithms in which the Hadamard transform is replaced by any other unitary transformation and the phase inversion is replaced by a rotation by an arbitrary angle. The time evolution of the amplitudes of the marked and unmarked states, for any initial complex amplitude distribution is expressed using first order linear difference equations. These equations are solved exactly. The solution provides the number of iterations T after which the probability of finding a marked state upon measurement is the highest, as well as the value of this probability, P_max. Both T and P_max are found to depend on the averages and variances of the initial amplitude distributions of the marked and unmarked states, but not on higher moments.Comment: 8 pages, no figures. To appear in Phys. Rev.

Determination of the parameters of semiconducting CdF2:In with Schottky barriers from radio-frequency measurements

Physical properties of semiconducting CdF_2 crystals doped with In are determined from measurements of the radio-frequency response of a sample with Schottky barriers at frequencies 10 - 10^6 Hz. The dc conductivity, the activation energy of the amphoteric impurity, and the total concentration of the active In ions in CdF_2 are found through an equivalent-circuit analysis of the frequency dependencies of the sample complex impedance at temperatures from 20 K to 300 K. Kinetic coefficients determining the thermally induced transitions between the deep and the shallow states of the In impurity and the barrier height between these states are obtained from the time-dependent radio-frequency response after illumination of the material. The results on the low-frequency conductivity in CdF_2:In are compared with submillimeter (10^{11} - 10^{12} Hz) measurements and with room-temperature infrared measurements of undoped CdF_2. The low-frequency impedance measurements of semiconductor samples with Schottky barriers are shown to be a good tool for investigation of the physical properties of semiconductors.Comment: 9 pages, 7 figure