Which of the Following Regarding Private (Unlisted)REITs Is TRUE

question 1

Multiple Choice

Which of the following regarding private (unlisted) REITs is TRUE?

• A)Unlisted REITs are less expensive than listed REITs
• B)Unlisted REITs are less liquid than listed REITS
• C)Unlisted REITs are more subject to short-term market price volatility than listed REITS
• D)"List or liquidate" provisions in unlisted REITs make such REITs less risky than listed REITS

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Definitions:

Industry Structures

The characteristics that define the competitive environment of a market, including the number and size of competitors, product differentiation, and ease of market entry.

Economic Profit

Total revenues minus explicit and implicit costs, representing the return on investment beyond the normal expected return.

Normal Profit

The level of profit that is necessary for a company to remain competitive in the market, often seen as the minimum acceptable return.

Allocative Inefficiency

A situation where resources are not allocated optimally, leading to a loss of economic efficiency.