Why would the guideline answer not include that NCREIF is more appropriate due to its representation of NON-LEVERED direct real estate investment when the case facts go to the trouble to specifically state that the foundation will make the investments WITHOUT LEVERAGE?
Would I get credit for stating that as a justification? I docked myself 2 points on this question. Even though it has been removed from the curriculum, I still have an aversion to ambiguousness!!!
and yes I understand that non-levered would apply to both NCFREIFs
Well if you understand that non leverage would apply to both indices it should be your cue to seek other parameters to tell them apart.
I am trying to show why
a. I am using NCREIF over NAREIT
b. I am using unsmoothed over smoothed
If im wrong im wrong but I was surprised when that was not part of the guideline answer especially as it is specifically stated in the case facts
Probably there is no credit for identifying NCREIF as correct choice over NAREIF, much like some PM answer choices list three negative answers so you don’t get too clever and deduce early that the correct answer must be a negative number!