Comparing management of open versus closed end funds

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Comparing Management of Open- versus Closed-End Funds:

Compare the management of a closed-end fund with that of an open-end fund. Given the differences in the funds' characteristics, explain why the management of liquidity is different in the open-end fund as compared with the closed-end fund.

Assume that the funds are the same size and have the same goal to invest in stocks and to earn a very high return. Which portfolio manager do you think will achieve a larger increase in the fund's net asset value? Explain.

Reference no: EM131231403

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