What type of ownership allows investors to own a fraction of a portfolio of assets?

The correct choice is a real estate investment trust (REIT) because it is specifically designed to allow multiple investors to pool their resources to invest in a diversified portfolio of real estate assets. By purchasing shares in a REIT, individual investors can indirectly own a portion of the income-generating properties within the portfolio, such as commercial buildings, apartments, or shopping centers, without the need to buy or manage the properties themselves.

REITs provide a way for investors to benefit from real estate investment without the complexities and responsibilities associated with direct property ownership. They are also required to distribute a significant percentage of their taxable income as dividends to their shareholders, making them an attractive option for income-focused investors.

Other options, while related to real estate investing, do not typically provide the same fractional ownership through a simplistic share purchase mechanism or are structured differently. For example, a real estate partnership generally refers to a group of individuals pooling resources for a specific investment, which may require more active management and direct involvement. Similarly, a private equity firm may invest in real estate but usually involves more complex structures and limited access for smaller investors. A real estate syndicate also involves pooling resources, but it tends to be less formal than a REIT and often does not provide the