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1.
Cash flows from master limited partnerships tend to be _______.
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Stable. MLPs tend to be be very stable and produce consistent cash flows over time.
2.
If you invest in a master limited partnership that is held in a retirement account, you will not need to pay taxes on your earnings.
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False. You may have to pay taxes anyway. Earnings are not generally tax-deferred.
3.
Royalty trusts invest mostly in assets in what sector?
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Energy. Royalty trusts invest mostly in energy, which can yield high returns at times, but which are also volatile.
4.
What will eventually happen to the distributions that royalty trusts pay their investors?
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They will disappear. Resources are finite; therefore, they will run out eventually.
5.
Real estate investment trusts specialize by _______.
Choose wisely. There is only one correct answer.
Type of property. For example, they may specialize in offices, malls, hotels, or many other property types.