Question: An Exchange-Traded Fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of

An Exchange-Traded Fund (ETF) is a security that represents a portfolio

An Exchange-Traded Fund (ETF) is a security that represents a portfolio of individual stocks. Consider an ETF for which each share represents a portfolio of two shares of Trade Me (TME), two shares of Air New Zealand (AIR), and four shares of Kiwi Property Group (KPG). Suppose the current stock prices of each stock are as shown here: TME: $34 per share AIR: $42 per share KPG: $16 per share One share of ETF currently trades at $200. Which of the following about the ETF is correct? A. The ETF is currently overpriced OB. The ETF is currently underpriced C. The ETF is currently fairly priced OD. It is hard to say if the ETF is overpriced or underpriced

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