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If NAV market price of a fund then the fund

This question belongs to Commerce Financial Management
Financial Management
?

If NAV > market price of a fund, then the fund ________

Answer & Solution
Correct Answer: Option A
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”.
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3 Comments
Muhammad
Muhammad 4 years ago
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 ?
Raouf Luck
Raouf Luck 6 years ago
If NAV less than market price of a fund, then the fund is selling at a premium.
Roshan Sha
Roshan Sha 6 years ago
How it is
?
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