Understand REITs: property exposure through investments: test your skills
Real estate investment trusts own income-producing property and pay out most of their taxable income. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Explain what a REIT owns
- Know the 90% distribution rule
- Compare listed and non-traded REITs
- Practice
1. REITs must generally distribute at least…
- Practice
2. Non-traded REITs can be…
- Practice
3. Broad stock index funds…
- Key idea
4. Which statement best explains "Property exposure through shares"?
- Key idea
5. Which statement best explains "Dividends by design"?
- Key idea
6. Which statement best explains "Liquidity differs"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
$8,000 in a REIT fund yielding 5%. How much is distributed in a year?
Show the answer
$400
$8,000 × 0.05 = $400.
Check what percentage of a broad index fund you hold is real estate.
More tests in this bootcamp
- Compare renting and buying with the full costs
- Check home affordability with the 28/36 guideline
- Balance your down payment, PMI and cash cushion
- Count closing costs before you buy a home
- Build a home repair reserve before something breaks
- Explore shared housing costs and landlord responsibilities
- Understand REITs: property exposure through investments
- Final exam: Housing and real estate