Assuming arbitrage costs are minimal, which of the following is most likely to occur when the share

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Assuming arbitrage costs are minimal, which of the following is most likely to occur when the share price of an ETF is trading at a premium to its intraday NAV?

A. New ETF shares will be created by the ETF sponsor.

B. Redemption baskets will be received by APs from the ETF sponsor.

C. Retail investors will exchange baskets of securities that the ETF tracks for creation units.

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Portfolio Management In Practice

ISBN: 9781119787969

1st Edition

Authors: CFA Institute

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Question Posted: Mar 30, 2024 06:00 AM

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Assuming arbitrage costs are minimal, which of the following is most likely to occur when the share

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A New ETF shares will be created by the ETF sponsor W...View the full answer

Portfolio Management In Practice

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