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harkovskaia [24]
2 years ago
8

A closed end fund is selling at a premium when the nav exceeds the market price. question content area bottom part 1 true false

Business
1 answer:
Nady [450]2 years ago
3 0

The statement "A closed end fund is selling at a premium when the NAV exceeds the market price" is false

What is NAV?
The net asset value(NAV) of a fund is determined as the total assets of the fund minus its total liabilities divided by the number of outstanding shares of the fund.

In other words, the NAV is the book value per share of the fund share, whereas the market price means the price at which each of its share is sold on an exchange.

For a fund to sell at a premium, it means that its market price exceeds its NAV and not the other way around.

Find out more about NAV on :brainly.com/question/17087199

#SPJ1

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