CFA level 3| 117 questions| Verified| With Complete Solutions
NAREIT correct answer: National Association Of Real Estate Investment Trusts - publically trade REITs - updated monthly - Index for Indirect real estate investment - real time, market cap weighted index of all REITs activel traded on NYSE and AMEX - relatively higher volatility than NCREIF index NCREIF correct answer: - Index for direct real estate investment - value weighted index (usually reported on a quarterly basis); based on property appraisal values (stale price bias) - benchmark of real estate covering sample of comercial properties owned by large US institutions - also sub-indices available grouped by real estate sector like apartments, inustrail, office etc NAREIT Hedged Index correct answer: - NAREIT - equity market component - has a lower correlation with equity markets (e.g. S&P 500) - more reflective of the underlying real estate return. Binary credit options correct answer: Options that provide payoffs contingent on the occurrence of a specified negative credit event. NCREIF unsmoothed index correct answer
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cfa level 3| 117 questions| verified| with complete solutions
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