The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value. Introduction: Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

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Answer 1

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Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

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Students have asked these similar questions

Why can closed-end funds sell at prices that differ from net asset value while open-end funds do not?

One seeming violation of the Law of One Price is the pervasive discrepancy of closed-end fund prices from their net asset values. Would you expect to observe greater discrepancies on diversified or less-diversified funds? Why?

How do unequal cash flows affect the future value of an investment?

Answer 2

Question

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

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Answer 3

Question

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

Answer 6

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

Answer 7

Chapter 4, Problem 5PS

Summary Introduction

To determine:

The reason behind difference in the price to sell between open end funds and closed end funds with respect to its net asset value.

Introduction:

Closed end funds refer to the fund that are offered by the investment company by initial public offering and they are usually fixed in number. Open end funds on the other hand, are offered by the fund company directly to investors. The quantity of shares is fixed in case of open end funds.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 4 - Prob. 1PS Ch. 4 - Prob. 2PS Ch. 4 - Prob. 3PS Ch. 4 - Prob. 4PS Ch. 4 - Prob. 5PS Ch. 4 - Prob. 6PS Ch. 4 - Prob. 7PS Ch. 4 - Prob. 8PS Ch. 4 - Prob. 9PS Ch. 4 - Prob. 10PS

Solution Summary: The author explains the difference in the price to sell between open and closed end funds with respect to its net asset value.

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