Which of the following is TRUE about close-end funds?

I. The price of close-end funds can fall below NAV.

II. Close-end funds trade on organized exchanges.

A. I and II

B. I only

C. Neither I nor II

D. II only

The Yale endowed fund offers higher returns than other endowed fund in the long run because it holds more _____________ assets.

a. illiquid

b. liquid