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1.
Investors willing to bear a certain amount of risk may receive good yields through a real estate investment trust.
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True. REITs can provide a high yield and a hedge against inflation for investors comfortable with a certain amount of risk.
2.
A real estate investment trust is most likely to focus on the area of _______.
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Equity. More than 90 percent of REITs invest in equity; smaller numbers invest in mortgage loans or a combination of equity and mortgage loans.
3.
If you want to invest in a REIT currently and want to earn high dividends, you might consult the NAREIT Website.
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True. NAREIT's Website reports current returns on REITs.
4.
A real estate investment trust that invests heavily in equity may offer the investor _______.
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Increased stability. REITs that invest in equity are generally less volatile than those that invest primarily in mortgage loans.
5.
The Tax Reform Act of 1986 expanded the powers of real estate investment trusts by _______.
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Allowing them to manage and operate real estate developments. Prior to the Tax Reform Act of 1986, REITs could own real estate, but they could not manage or operate it.