🎓CFA Final Prep All Topics

Deck 4 – Real Estate & Infrastructure

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Question

Why is demand for many infrastructure assets relatively stable across the business cycle?

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Answer

They provide essential services with relatively inelastic demand.

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Question

What feature gives infrastructure investments inflation protection?

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Answer

Contractual or regulated rate escalators linked to inflation.

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Question

Why do infrastructure assets often appeal to liability-driven investors such as pension funds?

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Answer

They offer long-duration cash flows that match long-term liabilities.

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Question

How does infrastructure generally differ from real estate in sensitivity to the economy?

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Answer

Infrastructure is more stable; real estate is more cyclical.

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