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2. (Chapter 4) You are an individual investor who is bullish on the energy sector of the US equity market. Rather than purchase shares of
2. (Chapter 4) You are an individual investor who is bullish on the energy sector of the US equity market. Rather than purchase shares of stock for several individual firms in the sector, you decide to reduce trading costs by purchasing XLE, a US energy sector ETF. Can you be confident that the price of XLE will generally stay within 1% of the net asset value (NAV) of the underlying shares of stock in the ETF's benchmark index? Why or why not
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