CFA Practice Question

CFA Practice Question

What is a characteristic of an open-end investment company?
A. NAV is based on current market prices, and it is computed twice daily
B. its market price is determined by supply and demand
C. it continues to repurchase and sell shares
Explanation: Open-end investment companies (mutual funds) sell additional shares of the fund at the NAV, with or without sales charge, or redeem shares at the NAV, with or without redemption fees.

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