Which of the Following Statements Regarding the Closed-End Investment Company's

question 82

Multiple Choice

Which of the following statements regarding the closed-end investment company's net asset value (NAV) is false?

• A) NAV is computed throughout the day based on prevailing market prices for the portfolio of securities
• B) The market price of the shares is determined by how they trade on the exchange
• C) NAV and market price of a closed-end fund are almost never the same
• D) No new investment dollars are available for the investment company unless it makes another public sale of securities
• E) All of the above are true

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Definitions:

Output

The volume of output in terms of products or services from a firm, industry, or the economy as a whole during a defined period.

Average Total Costs

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Cost

The total variable costs (costs that change with output level) of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.