CFA Practice Question

There are 139 practice questions for this study session.

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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