SIE practice questionmediumREITs - Portfolio Composition
A typical equity REIT seeks to earn returns for investors by:
- AOwning and operating income-producing real estate✓ Correct answer
- BIssuing collateralized mortgage obligations
- CTrading stocks and bonds
- DManaging private equity portfolios
Explanation
Why A — Owning and operating income-producing real estate
Equity REITs own and operate real estate to produce rental income; mortgage REITs focus on lending. C and D are unrelated.
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