SIE practice questionmediumREITs
Which is NOT a feature of most publicly traded REITs?
- ADiversification across real estate assets
- BLiquidity through exchange trading
- CA fixed rate of return✓ Correct answer
- D90% income distribution requirement
Explanation
Why C — A fixed rate of return
REIT dividends are not fixed and can fluctuate. REITs trade on exchanges, offer asset diversification, and must distribute at least 90% of taxable income.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Investment Companies & Packaged Products questions
- Which investor benefit is provided by mutual fund automatic reinvestment of dividends?
- A hybrid REIT combines the features of which two types of REITs?
- A key risk of variable annuities compared to fixed annuities is:
- Which of the following best describes an equity REIT?
- Which is a qualified expense for a 529 savings plan distribution?
- Upon maturity, a unit investment trust (UIT) typically:
- A typical hedge fund fee structure is:
- A distinguishing characteristic of a unit investment trust (UIT) compared to a mutual fund is that a UIT: