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1.
A real estate investment trust is most likely to invest in _______.
Factory outlet malls. About one fifth invest in retail enterprises, including shopping centers and factory outlet malls. Lower numbers of REITS also invest in many other different types of real estate, such as residential developments, hotels and resorts, self-storage businesses, and health-care facilities.
2.
Investors willing to bear a certain amount of risk may receive good yields through a real estate investment trust.
True. REITs can provide a high yield and a hedge against inflation for investors comfortable with a certain amount of risk.
3.
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.
4.
A major difference between a REIT and a real estate limited partnership is that _______.
A REIT is governed by an elected board of directors. A real estate limited partnership, on the other hand, is led by a general manager, who sometimes cannot be easily removed by investors.
5.
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.
