Question #9
Reading: Reading 33 Real Estate Investments
PDF File: Reading 33 Real Estate Investments.pdf
Page: 6
Status: Incorrect
Correct Answer: B
Your Answer: B
Question
Which of the following most accurately identifies one of the disadvantages of investing in real estate through publicly traded securities? Compared to other real estate investment vehicles, publicly traded securities expose investors to:
Answer Choices:
A. unlimited liability
B. more-volatile returns
C. inferior liquidity
Explanation
Disadvantages of investing in real estate through publicly traded securities include the
volatile returns that result from pricing that is determined by the stock market. Publicly
traded real estate securities offer investors the advantages of superior liquidity, and
liability that is limited to the amount invested.