With Regard to the Past Performance of U

question 5

Multiple Choice

With regard to the past performance of U.S.-based closed-end country funds

• A)most investors who can invest directly in foreign markets without incurring excessive costs are advised to do so.
• B)NAVs offer superior diversification opportunities compared to the CECFs.
• C)most investors who can invest directly in foreign markets without incurring excessive costs are advised to do so,and NAVs offer superior diversification opportunities compared to the CECFs.
• D)none of the options

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Definitions:

Principle

The original sum of money borrowed in a loan, or the amount of the investment before interest.

Interest

The cost of borrowing money or the return on investment, calculated as a percentage of the principal sum.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Discount Rate

It’s the rate used in discounted cash flow analysis for calculating the present worth of cash flows expected in the future.