Hector purchased a fund that had an asset allocation of 30% U.S. equities and 70% foreign equities. Hector bought the fund at a 15% discount from its NAV. Hector most likely purchased:
A) a global, closed-end, bond fund
B) a global, closed-end, equity fund
C) a global, open-end, equity fund
D) a foreign, closed-end, balanced fund

Question

Quizplus · Accepted Answer

Closed-end funds can trade at a discount to their NAV, and since the fund is equity-focused with both U.S. and foreign equities, it is likely a global, closed-end, equity fund.

Hector Purchased a Fund That Had an Asset Allocation of 30