Question

9) Real Estate Investment Trust (REIT) are a relatively new way of investing in real estate and

A) are limited by statute to just retail strip center investments

B) are now so established that they are well represented in the S&P 500

C) are a form of an LLC, and a way for everyday investors to invest in a diversified pool of large real estate investments

D) limited to high net worth investors

Answer 1

9) Real Estate Investment Trust (REIT) are a relatively new way of investing in real estate and They are now so well estabilished that they are a part of S&P 500.

REITS were first included in S&P 500 in october 2001 and grown since then to a larger exposure.The S&P 500 now includes 32 REITS in overall and they account for a 3% of overall index.

SO my answer would be (B)REITS are now so established that they are well represented in the S&P 500..

Investments in Reits are not limited to small or larger groups as it is assessible to all so Statement A and statement D are false and Reits are not a form of LLC , It may be said to be similar so statement (c) is also wrong as REITs are required to have a payout of 90% Which differs from that of LLCS.