SIE Exam Question 137: Answer and Explanation

Question: 137

Which of the following statements are true regarding real estate investment trusts (REITs)?

• A. They are professionally managed.
• B. Allows smaller investors to participate in capital appreciation and income returns of real estate without owning any property.
• C. Returns can be very volatile.
• D. All of the above.

Correct Answer: D

Explanation:

All of the statements are true. REITS are professionally managed, allow smaller investors to participate in capital appreciation and income returns of real estate without owning any property, and returns can be very volatile.