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:

Aromatic

A class of compounds characterized by the presence of one or more benzene rings which have delocalized pi electrons.

Antiaromatic

A type of cyclic compound that is destabilized by the delocalization of its electrons, failing to meet the criteria for aromatic stability.

Nonaromatic

Organic compounds that do not meet the criteria for aromaticity, lacking the special stability of aromatic systems.

Pyridine

A basic nitrogen-containing heterocyclic aromatic compound, resembling benzene but with one CH group replaced by a nitrogen atom.