CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Compared with REITs, the main advantage REOCs have is:

A. Active professional management.
B. Operating flexibility.
C. Earnings predictability.
Correct Answer: B

Investors of REITs? and REOCs? both enjoy active professional management. Earnings predictability is the advantage of REITs? due to the contractual nature of REITs? rental income. REOCs do have more operating flexibility as they are free to invest in any kind of real estate.

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