1. Which of the following statements regarding the secondary mortgage market is FALSE?

a) It is only for individual investors and not institutional investors

b) It provides the public with a relatively safe fixed income investment alternative

c) It helps standardize mortgage loans so that they can be packaged together as viable investments and easily understood

d) It enables mortgage underwriters to sell mortgages once they write them and thereby replenish funds with which new loans can be originated

2. Which of the following provides a measure of the extent to which returns tend to move together or have no relationships?

a) The coefficient of determination

b) The variance

c) The coefficient of variation

d) The coefficient of correlation

3. Which of the following statements is FALSE regarding Funds from Operations?

a) Dilution and accretion of FFO occur when newly acquire properties have less or greater FFO than the rest of the portfolio

b) Investors want lower FFO to save on taxes

c) FFO differs from earnings per share due to the impact of depreciation and property sales

d) FFO is the REIT equivalent of corporate earnings per share

4. REITs can expand their income by:

a) Speculating with build-to-suit projects for existing tenants

b) By engaging in any or all of these activities

c) Offering property management, marketing or other services to third parties

d) By using financial leverage