CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Most REITs and REOCs:

A. enjoy positive leverage spread.
B. have no leverage.
C. suffer negative leverage spread.
Correct Answer: A

The going-in cap rates on property investments are higher than the cost of debt.

User Contributed Comments 2

User Comment
Gouldenone2 What is leverage spread?
KYZKYZ Leverage spread is nothing but the amount or percentage of debt to total value i.e. Debt / Debt+Equity
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