Closed-End Funds Have a Fixed Number of Shares; Open-End Funds

question 59

True/False

Closed-end funds have a fixed number of shares; open-end funds do not.

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Definitions:

Internal Rate

Typically refers to the Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.

Salvage Value

The expected remaining valuation of an asset after its service life has ended.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.