1.According to NAREIT, REIT stocks correlation with the S&P 500 during the period from 1980 through 2010 was 0.55. If the S&P 500 gained 10% during this period, what is the expected gain in REIT stocks?

	1.	5.5%
	2.	5.0%
	3.	4.5%
	4.	10%

2.

By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $1,000 and the shareholder has a tax rate of 40%, what is the after tax return to the shareholder?

	1.	$400
	2.	$600
	3.	$1,000
	4.	$950

3.

REITs are required to have at least what % of its assets invested in real estate, mortgage loans and shares in other REITs?

	1.	70%
	2.	75%
	3.	80%
	4.	90%

4.REITs are required to derive at least what % of gross income from rents, mortgage interest, or gains from the sale of property?

	1.	65%
	2.	75%
	3.	95%
	4.	100%

5.If the value of a property is $10M, and the NOI is $450K, what is the implied cap rate?

	1.	3.5%
	2.	4.0%
	3.	4.5%
	4.	5.0%

6.If a property has an NOI of $600K, and a comparable property traded at a 5% cap rate, what is a reasonable estimate of the property's value?

1. 	1.	$12M
   	2.	$10M
   	3.	$8M
   	4.	$14M

7.The REIT Modernization Act enabled REITs to own a taxable subsidiary. This enabled the REIT's to engage in what for-profit activities?

	1.	Merchant property development
	2.	Fee brokerage
	3.	Telecom and broadband
	4.	All of the above.