An investment that embodied a combination of the desirable aspects of mutual funds and closed-end funds would require portfolios to be traded like stocks throughout the day at a price equal to the continuously known ________ and would be, in effect, an ________.

Question

Quizplus · Accepted Answer

The question describes an investment that has portfolios that are traded like stocks throughout the day at a price equal to the continuously known NAV. This type of investment is known as an exchange-traded fund (ETF). ETFs combine the desirable aspects of both mutual funds (which have diversified portfolios) and closed-end funds (which trade like stocks). Therefore, the answer is B, NAV; exchange-traded fund.

An Investment That Embodied a Combination of the Desirable Aspects