Fundamental risk may be limited by a deadline that forces a convergence between price and intrinsic value.
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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?
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At liquidation price will equal NAV This puts a limit on fundamental risk Investors need ...View the full answer
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Muhammad Umair
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Related Book For
Essentials Of Investments
ISBN: 9780073368719
7th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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