In this example what they exactly explained for point no C?
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REITS are like mutual funds. Just that, they invest in real estate instead of financial securities. REITS are completely tax exempt since they are required to pay almost all their earnings to the investors in REITs. So, the statement C is false since it is saying that REITS are required to pay taxes.
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Here in Option B they are talking about Correlation spikes up in times of crisis as all investors become more risk averse begin a flight to safety and finding shelter in US Treasury stocks and the benefit of diversification is lost exactly at the time when we need it the most