Multiple Choice:

1- Which of the following is a typical characteristic of REITs?

A.) There is a tax advantage to holding REITs

B.) REIT investments have low transparency

C.) REITs have higher liquidity as compared to owning physical real estate

D.) REITs offer high correlation with stocks

E.) None of the above

2- __________ is a set of portfolios with the lowest risk for a given level of return.

A.) The efficient frontier

B.) The semi-variance

C.) The mean-variance

D.) Risk parity

3- Which of the following is the largest component of GDP?

A.) Consumption

B.) Investment

C.) Government

D.) Net exports

4- For investing, __________ is often used to measure risk.

A.) return

B.) uncertainty

C.) value-at-risk

D.) variance

E.) None of the above

5- Macroeconomic risk is __________.

A.) systematic risk

B.) firm-specific risk

C.) non-diversifiable risk

D.) None of the above

6- Which of the following is not true with regard to you taxable portfolio?

A.) It should include municipal bonds

B.) It should include low dividend investments

C.) It should include REIT investments

D.) None of the above