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1.
One disadvantage of investing in a real estate investment trust is ______.
Low returns due to decreased mortgage interest rates. REITs that invest in mortgage loans can post poor performances following drops in interest rates.
2.
All real estate investment trusts focus on a particular urban center.
False. While some REITs focus on a single urban area, others focus on a region or invest nationally.
3.
A real estate investment trust is a company that owns, manages, and/or operates real estate to earn profits for shareholders.
True. This is why REITs, as they are called, were created.
4.
A real estate investment trust that invests heavily in equity may offer the investor _______.
Increased stability. REITs that invest in equity are generally less volatile than those that invest primarily in mortgage loans.
5.
You are most likely to be able to obtain REITs from _______.
An investment broker. You can buy REITs from the same venues where you might obtain common stock and mutual funds.
