6. Open-End versus Closed-End Funds (LO2, CFA3) An open-end mutual fund typically keeps a percentage, often around

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6. Open-End versus Closed-End Funds (LO2, CFA3) An open-end mutual fund typically keeps a percentage, often around 5 percent, of its assets in cash or liquid money market assets. How does this affect the fund’s return in a year in which the market increases in value? How about during a bad year? Closed-end funds do not typically hold cash. What is it about the structure of open-end and closed-end funds that would influence this difference?

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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