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Level II
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Alternative Investments
Alternative Investments
Medium
Compared to farmland, timberland's most distinguishing investment characteristic is:
A
Harvest flexibility — the ability to delay harvest without spoilage while trees continue growing
B
Higher correlation with equity markets due to construction sector linkage
C
Shorter investment horizons due to rapid biological growth cycles
D
Lower exposure to weather risk because trees are more resilient than crops
Select an answer to continue
Tags
#timberland
#harvest-flexibility
#real-option
#biological-growth
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