Which of the following statements in relation to the closed-end fund puzzle is INCORRECT? a. Closed-end funds

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Which of the following statements in relation to the ‘closed-end fund puzzle’ is INCORRECT?

a. Closed-end funds typically start out trading at a discount of 5%-10% at IPO

b. Within 120-200 days closed-end funds typically trade at a discount of over 10% on average.

c. Closed-end fund discounts/premia fluctuate wildly and are mean-reverting

d. When termination of a closed-end fund is announced, discounts shrink considerably.

Related Book For answer-question

Governmental and Nonprofit Accounting

ISBN: 978-0132751261

10th edition

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

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Posted Date: Aug 02, 2022 06:23 AM

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Which of the following statements in relation to the closed-end fund puzzle is INCORRECT? a. Closed-end funds

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Expert Answer:

Choice a Its incorrect and therefore is what we are looking for here A newly listed closedend fund u... View the full answer

Governmental and Nonprofit Accounting

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