If a Closed-End Investment Company Is Selling for a Discount

question 30

Multiple Choice

If a closed-end investment company is selling for a discount

• A) its price exceeds the net asset value
• B) its price is less than the net asset value
• C) dividend income exceeds capital gains
• D) capital gains exceed dividend income

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Definitions:

Rational Decision Making

A systematic, step-by-step process for making choices that is designed to result in the most optimal outcome.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and entails self-regulation and discipline.

Postconventional

A stage in moral development where individuals make decisions based on personal principles and the mutual benefit of all, beyond societal norms and conventions.

Social Norms

Social Norms are the unwritten rules that govern acceptable behavior in society or within particular social groups.