Studies of closed-end funds find __________, which __________ the EMH.
A) prices at a premium to NAV; is consistent with
B) prices at a premium to NAV; is inconsistent with
C) prices at a discount to NAV; is consistent with
D) prices at a discount to NAV; is inconsistent with
E) prices at premiums and discounts to NAV; is inconsistent with

Question

Quizplus · Accepted Answer

Studies of closed-end funds often find that their prices can be at premiums or discounts to their Net Asset Value (NAV), which is inconsistent with the Efficient Market Hypothesis (EMH). The EMH suggests that all available information is already reflected in asset prices, making it difficult to consistently achieve higher returns. The existence of premiums and discounts suggests that prices can deviate from fundamental values, challenging the EMH.

Studies of Closed-End Funds Find __________, Which __________ the EMH

Studies of Closed-End Funds Find , Which the EMH