Explanation:
Shares of closed-end mutual funds are redeemed at their prevailing market values, not at their NAVs.
All other statements are correct. Shares at times trade at a discount or at a premium from the NAV, and these funds offer investors professional management.
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Q.15 Consider the following statements regarding closed-end mutual funds:
I. The funds offer investors professional management
II. Shares at times trade at a discount to the NAV
III. Shares at times trade at a premium to the NAV
IV. Funds are redeemed at their NAVs
Which of the statements above is/are incorrect?
A
IV only
B
II and III only
C
II, III and IV
D
All of the above
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