At liquidation, price will equal NAV. This puts a limit on fundamental risk. Investors need only carry
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At liquidation, price will equal NAV. This puts a limit on fundamental risk. Investors need only carry the position for a few months to profit from the elimination of the discount. Moreover, as the liquidation date approaches, the discount should dissipate. This greatly limits the risk that the discount can move against the investor. At the announcement of impending liquidation, the discount should immediately disappear, or at least shrink considerably.
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Related Book For
Essentials Of Investments
ISBN: 9780697789945
8th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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