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Home  arrow Student Resources  arrow Chapter 4: Institutional investors  arrow Multiple choice questions

Multiple choice questions

Try the multiple choice questions below to test your knowledge of this chapter. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.

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This activity contains 7 questions.

Question 1.
Closed-end funds have lower cash requirements than open-end funds because:

End of Question 1

Question 2.
Shares of a closed-end fund are trading at a 4% premium over NAV. If NAV is $10 per share, what is the current market price of the fund’s shares?

End of Question 2

Question 3.
Which type of fund invests in debt securities with very short maturities?

End of Question 3

Question 4.
Which type of fund is most likely to have the lowest management fee?

End of Question 4

Question 5.
Shares of closed-end funds often sell:

End of Question 5

Question 6.
A closed-end fund owns foreign securities with a market value of $95 million, has 5 million shares outstanding, owes its employees $500,000, and trades at a 5% discount. The net asset value per share is:

End of Question 6

Question 7.
Most mutual funds are members of a group of mutual funds known as:

End of Question 7

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