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SIE: Investment Companies & Packaged Products
SIE practice questionmediumREITs

Which of the following best describes a hybrid REIT?

  1. AIt holds only publicly traded stocks
  2. BIt focuses solely on commercial real estate equity
  3. CIt invests exclusively in residential mortgages
  4. DIt invests in both properties and mortgages✓ Correct answer
Explanation

Why DIt invests in both properties and mortgages

A is correct; hybrid REITs invest in both properties (equity) and mortgages. B and C are too narrow, and D is inaccurate for a REIT.

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