“Compared to the NAREIT Index, the NAREIT Index Hedged is a better measure of indirect real estate performance because it excludes the effects of interest rate changes. The performance of direct real estate investment can be measured using the NCREIF Index. However, the NCREIF Index Unsmoothed is better than the NCREIF Index because it corrects for the sale valuation bias.”
CFAI Answer: Only the NAREIT Index statement is correct, but no further explaination. Can someone pls explain why the statement about the others are not correct?
My understanding below but not sure if that’s correct
” interest rate changes” should be ” overall equity market return”
” sale valuation bias” should be “stale valuation bias”
tks |
发表于 2013-4-8 15:46
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