With regard to the past price performance of U.S.-based closed end country funds,

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Quizplus · Accepted Answer

U.S.-based closed end country funds (CECFs) typically behave more like U.S. securities than their corresponding NAVs. This means that they are more influenced by the market sentiment and macroeconomic conditions of the U.S. rather than the country they are invested in. In other words, the CECFs tend to reflect typical behavioral patterns of U.S. securities, such as momentum or mean reversion, rather than reflecting the fundamental factors of the country they are invested in. This phenomenon has been observed in various studies and is considered to be one of the reasons why investing in CECFs may not accurately reflect the performance of the underlying country's stocks.

With Regard to the Past Price Performance of U