Suppose you have $2000 to invest and you are considering the following two funds: 1. What is the one-year dollar return
Posted: Wed Mar 30, 2022 3:46 pm
Suppose you have $2000 to invest and you are considering the
following two funds:
1. What is the one-year dollar return from purchasing $1000
worth of each fund. Assume that your broker charges you $5 per
trade and that you can purchase fractional shares.
2. The closed-end fund puzzle refers to the fact that closed-end
mutual funds often trade at a discount. Explain why this same
puzzle is not found in ETFs. It might be helpful to start by
explaining the structural difference between ETFs and open-ended
mutual funds
following two funds:
1. What is the one-year dollar return from purchasing $1000
worth of each fund. Assume that your broker charges you $5 per
trade and that you can purchase fractional shares.
2. The closed-end fund puzzle refers to the fact that closed-end
mutual funds often trade at a discount. Explain why this same
puzzle is not found in ETFs. It might be helpful to start by
explaining the structural difference between ETFs and open-ended
mutual funds