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A Major Question in Modern Finance Regarding Closed-End Investment Companies

Question 50

Multiple Choice

A major question in modern finance regarding closed-end investment companies is


A) why do these funds sell at a premium?
B) why do the premiums differ between funds?
C) what are the returns available to investors from funds that sell at a large discount?
D) what are the returns available to investors from funds that sell at a large premium?
E) what is the average premium?

Correct Answer:

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