Study Question of the Week: March 19, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79 and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7Series 62Series 65Series 66, Series 79 and Series 82): 

Which of the following statements concerning REITs (real estate investment trusts) and RELPs (real estate limited partnerships) are true?

I. REITs pass through income, but not losses, to shareholders

II. RELPs pass through both income and losses to shareholders

III. REITs are highly illiquid

IV. RELPs are highly liquid

Answers:

A. I and III

B. II and IV

C. I and II

D. I, II, III and IV

Correct Answer: C. I and II

Rationale: Statements I and II are both true, but statements III and IV are reversed. Limited partnership investments are almost always illiquid, while REITs are highly liquid.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

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