4 - 1INCORRECT...

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1 INCORRECT Which one of the following statements regarding open-end mutual  funds is  false? A) The funds redeem shares at net asset value. B) The funds offer investors professional  management. C) The funds offer investors a guaranteed rate of  return. D) B and C. E) A and B. Feedback: Open-end mutual funds redeem shares at net asset value and offer investors professional  management. However, they do not offer investors a guaranteed rate of return. 2 INCORRECT Which one of the following statements regarding closed-end mutual  funds is  false? A) The funds always trade at a discount from  NAV. B) The funds redeem shares at their net asset  value. C) The funds offer investors diversification. D) A and B. E) None of the above. Feedback: Closed-end mutual funds trade at premiums and discounts from NAV. 3 INCORRECT Century fund had average daily assets of $3.0 billion in 2007. The fund  sold $750 million worth of stock and purchased $850 million worth of 
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This note was uploaded on 03/06/2012 for the course FINANCE 5700 taught by Professor Bob during the Spring '12 term at websteruniv.edu.

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4 - 1INCORRECT...

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