A Major Question in Modern Finance Regarding Closed-End Investment Companies

question 13

Multiple Choice

A major question in modern finance regarding closed-end investment companies is

• A) why do these funds sell at discounts?
• B) why do the discounts differ between funds?
• C) what are the returns available to investors from funds that sell at a large discount?
• D) choices a and b only
• E) all of the above

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Definitions:

Soviet Union

A socialist state that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), composed of multiple republics, and was a major world power during its existence.

Yalta Conference

A meeting held in February 1945 among the heads of government of the United States, the United Kingdom, and the Soviet Union (Roosevelt, Churchill, and Stalin) to discuss post-World War II reorganization of Europe and the establishment of the United Nations.

Protectorate

A state or territory partially controlled and protected by a more powerful country but retaining some degree of internal autonomy.

Pro-Soviet Government

Governments or political regimes that were aligned with or supportive of the Soviet Union during the Cold War, often influenced by communist ideology.