With a Performance-Based Management Contract, an Asset Manager's Fees Are

question 1

Multiple Choice

With a performance-based management contract, an asset manager's fees are tied directly to the rate of return earned by investors on the portfolio of managed properties relative to a benchmark. In private commercial real estate, the choice of benchmarks for performance is limited in large part to return indices provided by which of the following organizations?

• A) Standard and Poor's
• B) National Association of Real Estate Investment Trusts
• C) National Council of Real Estate Investment Fiduciaries
• D) Wilshire Associates

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Definitions:

Social Stratification

The hierarchical arrangement of society into different classes or groups based on factors like wealth, occupation, or race.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Strata

Layers or levels within a society or system, often referring to social classes or geological layers.

Earn

To receive a payment or reward in exchange for work done or services provided.