5-72 Which of the Following Observations Is True of Open-End

question 71

Multiple Choice

5-72 Which of the following observations is true of open-end mutual funds?

• A)They have a fixed number of shares outstanding.
• B)The value of shares changes with the demand for the fund by investors.
• C)Investors buy and sell shares on a stock exchange.
• D)The demand for shares determines the number outstanding.
• E)Shares may trade at a premium or discount.

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Definitions:

Project Undertaken

Refers to a specific initiative or task that has been started or committed to, usually within a business or professional context.

Sunk Costs

Costs that have been spent and are non-recoverable.

Erosion Costs

Costs that occur when a new project or investment negatively impacts the revenue or profits of existing projects or investments.

Financing Costs

Expenses incurred by a company or individual in the process of raising capital through debt or equity.