Hector Purchased a Fund That Had an Asset Allocation of 30

question 56

Multiple Choice

Hector purchased a fund that had an asset allocation of 30% U.S. equities and 70% foreign equities. Hector bought the fund at a 15% discount from its NAV. Hector most likely purchased:

• A) a global, closed-end, bond fund
• B) a global, closed-end, equity fund
• C) a global, open-end, equity fund
• D) a foreign, closed-end, balanced fund

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change or respond as a result of manipulations of the independent variable.

Manipulates

To control or influence a person, situation, or system cleverly, unfairly, or unscrupulously, often to gain an advantage.

Independent Variable

In an experiment, the variable that is manipulated to observe its effect on a dependent variable.

Treatment Variable

A variable manipulated by researchers in an experiment to determine its effect on an outcome measure; also known as the independent variable.