An Investment That Embodied a Combination of the Desirable Aspects

question 58

Multiple Choice

An investment that embodied a combination of the desirable aspects of mutual funds and closed-end funds would require portfolios to be traded like stocks throughout the day at a price equal to the continuously known ________ and would be, in effect, an ________.

• A) premium; exchange-traded fund.
• B) NAV; exchange-traded fund.
• C) NAV; open-end fund.
• D) price; mutual fund.

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Definitions:

Top-Down Processing

A cognitive process that uses pre-existing knowledge or expectations to interpret and understand sensory information.

Sensory Information

Data received by the senses (sight, hearing, touch, taste, and smell) that is processed by the brain.

Past Memory

The recall of information about previous events or experiences from an individual's life; often differentiated by episodic (personal events) and semantic (factual knowledge) memory.

Dissociation

A psychological experience of disconnection between thoughts, identity, consciousness, and memory.