Asked by Shane 2Wavyy on Jul 14, 2024
Verified
Shares in hedge funds are priced
A) at NAV.
B) a significant premium to NAV.
C) a significant discount from NAV.
D) a significant premium to NAV or a significant discount from NAV.
E) None of the options are correct.
NAV (Net Asset Value)
The per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in its portfolio, minus liabilities, by the number of shares outstanding.
Significant Premium
A significant premium refers to a large additional amount paid over the usual cost or value, often used in the context of acquisitions where the buyout price is well above the market price of a company's shares.
- Comprehend the strategies for investing and the operational procedures of hedge funds.
Verified Answer
Learning Objectives
- Comprehend the strategies for investing and the operational procedures of hedge funds.
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