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Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following except:

a. Low transaction costs
b. Risk sharing amongst investors
c. Highly segmented markets
d. High information efficiency

1 Answer

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Answer: Option C : Highly segmented market

Explanation: The Highly segmented market involves the division of a broad business market or consumer into subgroups customers based on shared characteristics. Investors will not benefit from the real estate in a Highly segmented market because further division renders stock to less dividend.

User Dhiraj Thakur
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