17-65 in the Event of Financial Distress,open?ended Mutual Fund Investors

question 48

Multiple Choice

17-65 In the event of financial distress,open?ended mutual fund investors

• A)have an incentive to cash in their shares quickly since they are paid on a first come,first served basis.
• B)have an incentive to avoid a run since that will deplete the fund net asset value.
• C)have an incentive to cash in their shares quickly since that will increase the fund's net asset value.
• D)will switch into low risk bank deposits.
• E)have an incentive to avoid a run since the Federal Reserve guarantees mutual fund holdings.

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