A week later, your colleague comes into your office and is really excited about this new ad he saw in the Los

Angeles Times. It says that he can invest in real estate and get a $8(1)/(2)\%$ to $12\%$preferred$$ return. He does not

really understand what $$preferred$$ means but it sure sounds good to him. He also likes the part that says there is

no stock or bond market exposure. It also says that the investment is only offered to $$accredited investors.$$ He

wonders if that means he has to take a test to invest. What can you tell him about this advertisement?