What is the current price of the fund

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Do manual funds generally provide efficient diversification?

What is the basic difference between a closed-end fund and an open-end fund?

Why might there be some potential danger in investing in sector funds?

Are earnings of mutual funds normally taxed at the fund level or the shareholder level?

The Twentry-First Century closed-end fund has $350 million in securities, $8 million in liabilities, and 20 million shares outstanding. It trades at a 10 percent discount from net asset value.
a. What is the net asset value of the fund?
b. What is the current price of the fund?
c. Suggest two reasons why the fund may be trading at a discount from net asset value.


Under dollar-cost averaging, an investor will purchase $6,000 worth of stock each year for three years. The stock price is $40 in year 1, $30 in year 2, and $48 in year 3.
a. Compute the average price per share.
b. Compute the average cost per share.
c. Explain why the average cost is less than the average price.

 

Reference no: EM13293280

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