You own shares of the Nuveen Floating Rate Income Fund (ticker: JFR), which is a closed-end...

You own shares of the Nuveen Floating Rate Income Fund (ticker: JFR), which is a closed-end fund. You want to sell your shares. Which statement below applies to your situation?

Group of answer choices

Nuveen only accepts returns of shares if they are proven to be defective

Y must hold your shares because they have not yet matured

You must sell your shares to another investor

You may redeem your shares directly from Nuveen

The primary difference between a balanced fund and an asset allocation is:

Group of answer choices

that an asset allocation fund invests in a mix of stocks and bonds, while a balanced fund does not.

that a balanced fund's asset mix is roughly static while an asset allocation fund is dynamic over time.

that an asset allocation fund's asset mix is roughly static while a balanced fund is dynamic over time.

that a balanced fund invests in a mix of stocks and bonds, while an asset allocation fund does not.

Expert Solution

1. Nuveen Floating Rate Income Fund is closed end fund, it trades on an exchange like equity and can be sold and bought in the secondary market by investors. So, i must sell those share to another investor. Other options provided are not correct as the fund type is closed end.

2. Primary difference between a balanced fund and asset allocation fund is "that a banlanced fund invests in mix of stocks and bonds, while an asset allocation fund does not."

jeff jeffy answered 2 years ago

A closed-end fund starts the year with a net asset value of $21 . by year-end...

A closed-end fund starts the year with a net asset value of $21 . by year-end , NAV equals $20.5 . At the beginning of the year , the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 4% discount to NAV . the fund paid year-end distributions of income and capital gains of 2.50$ . what is the rate of return to an investor in the fund...

14) You are evaluating a closed-end mutual fund and see that its price is different from...

14) You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV). The fund has an expense ratio (ε) of 4.95% and a dividend yield (δ) of 4.00%. The fund has experienced a risk-adjusted abnormal return (α) of 6.05%. a)By what amount (premium or discount) is the fund likely to trade relative to its NAV? Use the equation: (α−ϵ) / (δ + ϵ − α) NewCorp stock has a required return...

Discuss the difference in their structures that explain these differences between a closed-end fund and an...

Discuss the difference in their structures that explain these differences between a closed-end fund and an open-ended mutual fund: a) When investors buy shares of the open-end mutual fund (in the aggregate), the number of fund shares increase. But, this is not the case with a closed-end fund. Why? b) An open-end mutual fund keeps a larger % cash (or cash-equivalent) allocation in the portfolio than the closed-end fund does. Why?

A closed-end fund starts the year with a NAV of $12.55. By year-end, NAV equals $11.36....

A closed-end fund starts the year with a NAV of $12.55. By year-end, NAV equals $11.36. At the beginning of the year, the fund was selling at a 5% discount to NAV. By the end of the year, the fund is selling at a 1% premium to NAV. The fund paid year-end distributions of income and capital gains of $1.21. What is the rate of return to an investor in the fund during the year? Round your answer to 4...

A closed-end fund starts the year with a net asset value of $30. By year-end, NAV...

A closed-end fund starts the year with a net asset value of $30. By year-end, NAV equals $31.90. At the beginning of the year, the fund is selling at a 2% premium to NAV. By the end of the year, the fund is selling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.30. a. What is the rate of return to an investor in the fund during the year? (Do not...

A closed-end fund starts the year with a net asset value of $22. By year-end, NAV...

A closed-end fund starts the year with a net asset value of $22. By year-end, NAV equals $23.10. At the beginning of the year, the fund is selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 8% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.50. a. What is the rate of return to an investor in the fund during the year? (Do not...

You own a $117,100 par, floating-rate bond indexed to 3M Libor. If 3ML is 3.4%...

You own a $117,100 par, floating-rate bond indexed to 3M Libor. If 3ML is 3.4% and the coupon spread (QM) is 1.6% then what is the first period's coupon payment if the bond pays its coupon 4 times per year?

The following questions refer to options on SNAP (Ticker: SNAP), which closed today at $22.59/share. Below are...

The following questions refer to options on SNAP (Ticker: SNAP), which closed today at $22.59/share. Below are a table of closing prices on SNAP options on 8/31/2020: _____________________________________________________ Strike Expiration Calls Puts________ 20 October, 2020 $3.30 $0.71 21 October, 2020 $2.61 $1.04 22 October, 2020 $2.04 $1.44 23 October, 2020 $1.55 $1.95 24 October, 2020 $1.15 $2.54 ______________________________________________________ Which of these options are in-the-money? Suppose you think that the price is unlikely to remain above $23 during the next month so you write a call with a strike of $23. Create a table of values of your call position as...

which of the following accounts is not closed at the end of the accounting period a....

which of the following accounts is not closed at the end of the accounting period a. depreciation expense b. deferred service revenue c. sales d. cost of good sold

1. List and explain the differences between a closed-end investment company and a mutual fund and...

1. List and explain the differences between a closed-end investment company and a mutual fund and give the sources of return from an investment in a closed-end investment company. 2. Could a closed-end investment company sell for a discount from net asset value but a mutual fund cannot sell for a discount? To answer this question you should differentiate a real estate investment trust (REIT) from a firm involved in building, developing, and owning properties.

Question