Which of the following is correct? I. ETF could offer short selling opportunity. II. Open-end fund...

Which of the following is correct? I. ETF could offer short selling opportunity. II. Open-end fund always ready to issue or redeem their shares at their net asset value. III. Close-end funds are often traded at premium. IV. 12b-1 fees are annual fees charged by a mutual fund to pay for marketing and distribution costs.

A. II and IV

B. I, II, and IV

C. II and III

D. II, III, and IV

Solutions

Expert Solution

Exchange traded fund are treated like normal stocks on the stock exchanges and they can be shorted also like normal stocks.

Open ended Mutual Funds are always ready to issue their shares at the net asset value and 12B 1 fees are paid for distribution charges

Correct answer will be option (B) I,II and IV

jeff jeffy answered 2 years ago

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