CFA Practice Question

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CFA Practice Question

Some hedge funds have two NAVs. Which NAV incorporates liquidity discounts?

A. reporting NAV.
B. net NAV.
C. trading NAV.
Correct Answer: C

The reporting NAV is based on quoted market prices and does not incorporates liquidity discounts.

User Contributed Comments 2

User Comment
Inaganti6 How do they arrive at a consensus of what the liquidity discount should be ?
khalifa92 bid:ask spread ?
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