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A Hybrid Alternative That Is Rapidly Gaining Popularity Which Trades

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A hybrid alternative that is rapidly gaining popularity which trades on an exchange but where prices are kept close to the value of the underlying portfolio through arbitrage activities by a few institutional investors is called


Definitions:

Compounded Monthly

Refers to the process of adding interest to the principal balance of a loan or investment on a monthly basis, allowing the interest to then earn interest in the subsequent months.

Quadruple

To multiply or increase fourfold; also refers to a quantity that is four times as large as another.

Effective Annual Rate

The interest rate that is adjusted for compounding over a yearly period.

Per Month

A term used to describe an action or event that occurs once every month.

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