REITs, Ginnie Maes, Freddie Macs, and Syndicates Do Not Provide

question 101

True/False

REITs, Ginnie Maes, Freddie Macs, and syndicates do not provide any diversification.

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Definitions:

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.

Cash Settlement

The provision of some futures contracts that requires not delivery of the underlying assets but settlement according to the cash value of the asset.

Stock Index Futures

Financial contracts that obligate the buyer to purchase or the seller to sell a stock index at a predetermined price on a specified future date.