Chartered Investment Manager (CIM) Practice Exam · Question
Consider a publicly traded REIT that has a Net Asset Value (NAV) per unit of $28.00. The current market price of the REIT unit is $25.20. If a client holds 500 units of this REIT, what is the total discount to NAV at which their position is trading?
The discount per unit is $28.00 - $25.20 = $2.80. For 500 units, the total discount is 500 units * $2.80/unit = $1,400.
Start free practice for Chartered Investment Manager (CIM) Practice Exam
399 questions · no signup required · 40 free questions per day
Question: Consider a publicly traded REIT that has a Net Asset Value (NAV) per unit of $28.00. The current market price of the REIT unit is $25.20. If a client holds 500 units of this REIT, what is the total discount to NAV at which their position is trading?
Answer options:
- $1,200
- $1,400
- $1,600 ✅ $1,800
Correct answer: $1,800
Explanation: The discount per unit is $28.00 - $25.20 = $2.80. For 500 units, the total discount is 500 units * $2.80/unit = $1,400.
Start free practice for Chartered Investment Manager (CIM) Practice Exam
399 questions · no signup required · 40 free questions per day
More about Chartered Investment Manager (CIM) Practice Exam
Related Questions
- Strategic asset allocation is:
- Modern Portfolio Theory introduced by:
- A client approaches you, a CIM-credentialed portfolio manager, wanting to understand the true cost of their mu
- Duration measures bond sensitivity to:
- Which of the following is an example of an alternative investment?
- An investment advisor's foremost duty to a client is to act in their best interest, placing the client's inter
More for Chartered Investment Manager (CIM) Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Chartered Investment Manager (CIM) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.