Series 7 practice questionmediumAlternative Investments — REITs
A hybrid REIT combines which two investment strategies?
- ADomestic and international real estate
- BReal estate and stock market investments
- CCommercial and residential properties only
- DEquity ownership of properties and mortgage lending✓ Correct answer
Explanation
Why D — Equity ownership of properties and mortgage lending
A hybrid REIT combines the strategies of both equity REITs (owning and operating properties for rental income) and mortgage REITs (investing in mortgages and mortgage-backed securities for interest income). This diversification provides income from both rent and interest, potentially reducing risk compared to a pure equity or mortgage REIT strategy.
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