Arbitrage by authorized participants prevents closed-end fund prices from differing from their net asset value. True O False
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A: Answer: The correct option is (4) All of the above.
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Q: Why can closed-end funds sell at prices that differ from net asset value while open-end funds do…
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Q: Short-term funding can result to noncurrent payables. Group of answer choices True False
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Q: __________ fund is defined as one in which the fund charges a sales commission to either buy into or…
A: See the definition below
Q: The Fund may be subject to tracking error, which is the divergence of the Fund's performance from…
A: TRACKING ERROR: DIVERGENCE OF FUND PERFORMANCE FORM THE UNDERLYING INDEX
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Q: The following are discounting techniques in capital budgeting, except? discounted payback…
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- Why can closed-end funds sell at prices that differ from net asset value while open-end funds do not?Why is it so hard for actively managed funds to generate higher rates of return than passively managed index funds having similar levels of risk? Is there a simple way for an actively managed fund to increase its average expected rate of return?What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why would an investor prefer to evaluate a fund based on a cash-on-cash return?
- How does an index fund differ from an activelymanaged fund?Which of the following regarding the closed end fund puzzle is FALSE? Group of answer choices a) Discounts of the closed end funds are the norm. b) The fluctuations in the discounts appear to be mean reverting. c) When the existing funds trade at a discount, the new funds are also issued at a discount. d) When a closed end fund is open ended, the discount shrinksWhich of the following regarding the investor sentiment theory of the closed end fund puzzle is FALSE? a) Investors in closed end funds are not as important an ownership group in the assets of the funds’ investment portfolios. b) The closed end fund is riskier than the underlying portfolio. c) Arbitrageurs are subject to limits to arbitrage. d) The noise trader risk is diversifiable.
- Explain the concept of immunization within a portfolio management context. How can immunization be achieved for a fixed income strategy? What type of fund would typically employ immunization techniques? Further, can you employ immunization for asset only funds, and if so, how is this different to asset and liability types of funds? Carefully justify your answers.__________ fund is defined as one in which the fund charges a sales commission to either buy into or exit from the fund. Group of answer choices A no-load A specialized sector A load An indexThe figures are for illustrative purposes and are not based on past performance with respect to the fund where your policy is linked. The investment returns used are for illustrative The returns are likely to change during the period. Also, the assumed returns do not represent the upper and lower limits of the actual return that may be realized. Values are calculated assuming the fund is earning 6%*, 8%* and 12%*. It is assumed that mode of payment is ANNUITY DUE.
- what are the key characteristics of active fund management and passive fund management, focusing on how the objectives of active management differ from those of passively managed funds.The _________ of an open-end fund provides the only market for buying or selling the shares of the fund. primary market investment banker secondary market issuing companyWhich of the following is not considered an “other long-term investment?” Sinking fund Preference share redemption fund Contingency fund Tax fund