If NAV > market price of a fund, then the fund ________
A. is selling at a discount
B. is selling at a premium
C. is an index fund
D. is an exchange traded fund
Answer: Option A
Solution(By Examveda Team)
If the fund is traded at a price lower than the NAV, it is called “discount”. Similarly if the fund is traded at a price higher than the NAV it is called “premium”.This Question Belongs to Commerce >> Financial Management
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Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
Dear kindly review your question.
If NAV > market price of a fund, then the fund _________?
This mean NAV is greater than Market Price
Solution means: it is called “premium”.
kindly explain ?
If NAV less than market price of a fund, then the fund is selling at a premium.
How it is
?