Closed-End Funds Are Frequently Issued at a ______ to NAV

question 29

Multiple Choice

Closed-end funds are frequently issued at a ______ to NAV and subsequently trade at a __________ to NAV.

• A) discount; discount
• B) discount; premium
• C) premium; premium
• D) premium; discount
• E) No consistent relationship has been observed.

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Definitions:

Moment-to-Moment

Describes experiencing or reacting to events one instant at a time, often associated with mindfulness and present awareness.

Relative Deprivation

A sense of dissatisfaction or resentment that arises from the belief that one is worse off compared to others in a similar situation or compared to societal norms.

Happiness Set Point

The theory suggesting individuals have a baseline level of happiness which, despite changes or life events, tends to return to its original level.

Adaptation-Level

A theory suggesting that people adapt to new stimuli and events, eventually perceiving them as normal and using this new norm as a baseline for future judgments.