- CFA Exams
- CFA Level I Exam
- Study Session 15. Alternative Investments
- Reading 40. Publicly Traded Real Estate Securities
- Subject 2. Net asset value approach
CFA Practice Question
The NAV per share of a REIT reflects the perceived value by:
B. public equity investors.
C. public debt investors.
A. private equity investors.
B. public equity investors.
C. public debt investors.
Correct Answer: A
On the other hand, the stock price of a REIT reflects the perceived value by public equity investors.
User Contributed Comments 3
| User | Comment |
|---|---|
| birdperson | so, it's B not A? |
| berns23 | I would have gone for B. haha. Note the difference between NAV and stock price! |
| KYZKYZ | Private equity investors will consider NAV and public equity investors will consider stock price. So the answer is option A. |