Term
Which of the following REIT types is NOT likely to own real property?
A. Hybrid REITs
B. Mortgage REITs
C. Equity REITs
D. None of the above REIT types are likely to own real property
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Definition
A. Hybrid REITs
B. Mortgage REITs
C. Equity REITs
D. None of the above REIT types are likely to own real property
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Term
The difference between EPS (earnings per share) and FFO (funds from operations) is
A. Irrelevant
B. Determined by growth of the company
C. Due to depreciation and amortization
D. Due to the number of shares outstanding
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Definition
A. Irrelevant
B. Determined by growth of the company
C. Due to depreciation and amortization
D. Due to the number of shares outstanding
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Term
The optimal combination of securities that provides the greatest amount of return for each level
of risk is know as:
A. the expected frontier.
B. the economic frontier.
C. the efficient frontier.
D. none of the above.
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Definition
A. the expected frontier.
B. the economic frontier.
C. the efficient frontier.
D. none of the above.
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Term
Interest on a construction loan is usually paid:
A. up front at the beginning of the loan.
B. periodically over the life of the loan.
C. in quarterly installments over the life of the loan.
D. at the end of the loan.
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Definition
A. up front at the beginning of the loan.
B. periodically over the life of the loan.
C. in quarterly installments over the life of the loan.
D. at the end of the loan.
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Term
What term applies to the use of third-party financing that may be needed between the time
funding is advanced by the permanent lender and repayment of the construction loan?
A. Interim loan
B. Mini-perm financing
C. Gap financing
D. Partial financing
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Definition
A. Interim loan
B. Mini-perm financing
C. Gap financing
D. Partial financing
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Term
Commitments for construction financing are usually contingent on commitments for
permanent financing.
T/F
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Definition
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Term
REITs are required to pay out no more than 75 percent of their earnings as dividends.
T/F x |
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Definition
False
Distribution to shareholders must equal or exceed the sum of 90% of REIT taxable income |
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Term
Real estate assets, cash, and government securities must represent at least 95% of REIT
assets.
T/F x
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Definition
False
Real estate assets, cash, and government securities must represent at least 75% of REIT
assets.
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Term
When used to evaluate the performance of an investment, the geometric mean is
considered to be superior to the arithmetic mean.
T/F
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Definition
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Term
When comparing investment alternatives, the coefficient of variation is deemed to be a
measure of risk-to-reward.
T/F
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Definition
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