Question
Which of the following best describe why ETF share prices are unlikely to deviate from their NAV by a substantial amount? ETFs are open-end funds
Which of the following best describe why ETF share prices are unlikely to deviate from their NAV by a substantial amount?
| ETFs are open-end funds and therefore the price must be equal to NAV | ||
| Markets are highly efficient so there are rarely mispriced assets in general | ||
| Authorized participants will arbitrage the mispricing | ||
| The ETF managers are manipulating prices to keep prices close to NAV |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
