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:

Composition Agreement

An arrangement where creditors agree to accept a partial payment from a debtor in full satisfaction of their claims.

UCC

The Uniform Commercial Code represents an all-encompassing series of legal directives that control all forms of commercial transactions within the U.S.

Contractual Duties

Obligations that parties are legally bound to perform as specified in a contract.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, which governs the sale of goods between parties based in different countries.