Which of the Following Is Not a Consideration for Investing

question 49

Multiple Choice

Which of the following is not a consideration for investing in real estate investment trusts (REITs) ?

• A)fluctuations in dividend payments
• B)excessive use of debt financing by some REITs
• C)fluctuating interest rates affecting securities valuations
• D)the federal tax rate paid by the trust

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Definitions:

Indifference Curve

In economics, a curve that represents different combinations of goods or services among which a consumer is indifferent, showing preferences.

Risk-Free Asset

An investment that is expected to deliver its returns without any risk of financial loss, traditionally government bonds are considered close to risk-free.

Utility

The measure of the welfare or satisfaction of an investor.

Treasury Bills

Short-term government securities issued at a discount from their face value and maturing in one year or less, representing a secure, low-risk investment option.