Hector purchased a fund that had an asset allocation of 40% debt and 60% equity. Hector bought the fund at a 10% discount from NAV. Hector purchased:
A) an equity, load fund.
B) a balanced, closed-end fund.
C) a balanced, load fund.
D) a large-cap, blend, load fund.

Question

Quizplus · Accepted Answer

A closed-end fund is typically purchased at a discount or premium to its NAV, and a balanced fund has a mix of debt and equity, matching the 40% debt and 60% equity allocation.

Hector Purchased a Fund That Had an Asset Allocation of 40