Fundamental risk may be limited by a deadline that forces a convergence between price and intrinsic value.
Question:
Fundamental risk may be limited by a “deadline” that forces a convergence between price and intrinsic value. What do you think would happen to a closed-end fund’s discount if the fund announced that it plans to liquidate in 6 months, at which time it will distribute NAV to its shareholders?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Question Posted: