Describes the characteristics of closed-end mutual fund

Assignment Help Financial Management
Reference no: EM131599662

Which of the following statements best describes the characteristics of a closed-end mutual fund? A. Shares in the fund are only sold once by the fund sponsor, the number of shares is determined by investor supply and demand, and investor demand may cause the market price to deviate from the NAV. B. Shares in the fund are only sold once by the fund sponsor, the number of shares is fixed, and investor demand cannot cause the market price and NAV to deviate. C. Shares in the fund may be sold at any time by the fund sponsor once the initial shares are sold, the number of shares is fixed, and investor demand may cause the market price to deviate from the NAV. D. Shares in the fund are only sold once by the fund sponsor, the number of shares is fixed, and investor demand may cause the market price to deviate from the NAV.

Reference no: EM131599662

Questions Cloud

What is the opportunity cost principle : What is the opportunity cost principle?
Characteristics of etfs except : All of the following are characteristics of ETFs EXCEPT:
Evaluating capital budgeting and other types projects : what is the reason companies typically use this rate for evaluating capital budgeting and other types projects?
Rationale behind using the modified internal rate of return : What is the rationale behind using the Modified Internal Rate of Return (MIRR) approach in evaluating projects?
Describes the characteristics of closed-end mutual fund : Which of the following statements best describes the characteristics of a closed-end mutual fund?
Describes the characteristics of open-end mutual fund : Which of the following statements best describes the characteristics of an open-end mutual fund?
What is the sustainable rate of growth : What is the sustainable rate of growth ?
Estimates that expected value and standard deviation : Bell Curve, Inc. estimates that expected value and standard deviation of its total liability losses for the forthcoming year as $10 million and $3 million
Line employees those employees working on assembly line : Consider as an example of line employees those employees working on an assembly line.

Reviews

Write a Review

Financial Management Questions & Answers

  Estimate the present value of the cash flows

Suppose you deposit $ 2,000 today and your account will accumulate to $ 4,000 in 10 years. What is the nominal annual rate of interest, given semiannual compounding? HKL Co. plans a new project that will generate $ 170,000 of continuous cash flow eac..

  Does interest rate parity exist between the two countries

Does Interest Rate Parity exist between the two countries for each of the scenarios below?

  Why do the differences in the PVs occur

Find the present value of $800 due in the future under each of these conditions. Why do the differences in the PVs occur?

  Your retirement account the day you retire

You and your wife are making plans for retirement. What amount do you need in your retirement account the day you retire?

  What is the nominal tax rate and effective tax rate

What is the nominal tax rate in Hicksville? (Assuming by “nominal” tax rate you are referring to the property tax rate (“r”)). What is the effective tax rate?

  Pay the loan off in equal monthly payments

You need to borrow $18,000 to buy a truck. The current loan rate is 9.9% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is the size of your monthly payment?

  Assume continuously compounded interest at rate r

Assume continuously compounded interest at rate r. You plan to borrow 1,000 today, 2,000 one year from today, 3,000 two years from today, and then pay off all these loans three years from today. How much will you have to pay?

  Understand the concept of liquidations

Rachel has been going over her tax lecture notes and is trying to understand the concept of liquidations.

  What does the market believe will be the stocks price

What does the market believe will be the stock's price at the end of 3 years and what ls the expected dividend per share for each of the 11011 5 years?

  Spot price of an investment asset that provides no income

The spot price of an investment asset that provides no income is $40, and the risk-free rate for all maturities (with continuous compounding) is 9%. What, to the nearest cent, is the 4-year forward price?

  Consider the spot interest rates for maturities

Consider the following spot interest rates for maturities of one, two, three, and four years. r1 = 4.1% r2 = 4.5% r3 = 5.2% r4 = 6.0% Assuming a constant real interest rate of 2 percent, what are the approximate expected inflation rates for the next ..

  What is the amount of the annual interest tax shield

Your firm has a $250,000 bond issue outstanding. These bonds have a 7% coupon, pay interest annually, and have a current market price equal to 103% of face value. What is the amount of the annual interest tax shield given a tax rate of 35%?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd