Why must open end funds keep more cash on hand than closed end funds?
Why must open end funds keep more cash on hand than closed end funds?
Homework Answers
Shares issued by open end funds have to be redeemed by the fund itself on an ongoing basis. The fund has to maintain the necessary cash reserves to meet the redemption calls.
In contrast, shares of closed end funds are traded in a stock exchange and hence the fund has no outflow on account of redemption.
For the above reason, the open end funds have to maintain higher cash balances.
Add Answer to:
Why must open end funds keep more cash on hand than closed end
funds?
Closed-end funds are purchased directly from the funds' manager. traded at NAV. less liquid than open-end...
Closed-end funds are purchased directly from the funds' manager. traded at NAV. less liquid than open-end funds. best purchased when they are selling at a premium.
Please Compare and contrast closed-end funds, open-end funds, and hedge funds.
Please Compare and contrast closed-end funds, open-end funds, and hedge funds.
Compared with open-end funds, closed-end funds a. Tend to invest in less liquid assets b. Tend...
Compared with open-end funds, closed-end funds a. Tend to invest in less liquid assets b. Tend to invest in foreign assets c. Tend to invest in Treasury securities d. Are actively managed to seek a target return If output were at potential and inflation were 4 percent (2 percent above the central bank’s target), the appropriate setting of the federal funds rate under a Taylor would be a. 4 percent b. 7 percent c. 6 percent d. Cannot be determined...
Why would a dollar in hand today be worth more than a dollar to be received...
Why would a dollar in hand today be worth more than a dollar to be received in the future? How does this affect cash flows? Why would this be important to Healthcare Finance Management?
7.What is an ETF? How do ETFs differ from open-end stock funds? A. ETFs are similar...
7.What is an ETF? How do ETFs differ from open-end stock funds? A. ETFs are similar to open-end mutual funds except they can be traded like stocks throughout the day. ETFs are designed to mimic particular stock indexes or sectors and are not actively managed. Closed-end stock funds only trade after the markets close and are traded at net asset value. B. ETFs are similar to closed-end mutual funds except they can be traded like stocks throughout the day. ETFs...
Which of the following statements regarding differences between Exchange Traded Funds (ETFs) and Open End Mutual...
Which of the following statements regarding differences between Exchange Traded Funds (ETFs) and Open End Mutual Funds is most incorrect? O ETFs trade like common stocks while Open End Mutual Funds do not. ETFs are typically less tax efficient than Open End Mutual Funds. ETFs tend to have lower fees than do Open End Mutual Funds. O ETFs reveal their composition daily while Open End Mutual Funds only report composition in quarterly or semi-annual intervals. ETFs may have options and...
O A U-shaped tube is closed at one end; the Po other end is open to...
O A U-shaped tube is closed at one end; the Po other end is open to the atmosphere. Water fills the side of the tube that includes the closed end, while oil, floating on the water, fills the side of the tube open to the atmosphere. The two liquids do not mix. O The density of oil is less than that of water Is the pressure at point A greater than, less than, or equal to the pressure p3? A....
Chapter 20 Homework Question: Distinguish between an open-end fund and a closed-end fund. O An open-end...
Chapter 20 Homework Question: Distinguish between an open-end fund and a closed-end fund. O An open-end fund is always open during the day, a closed-end fund can sometimes close during the day. An open-end fund isssues new shares as new money is recceived; a closed-end fund only issues shares one tine. An open-end fund is never liquid; a closed-end fund is sometimes liquid O All of the above
drop down 1 options- •open ended • close ended drop down 2 options- •is •is not...
drop down 1 options- •open ended • close ended
drop down 2 options- •is •is not
drop down 3 options- •are •are not
2. Understanding the difference between open-end and closed-end funds Categorizing Mutual Funds For each of the following statements regarding mutual funds, indicate whether it is true of open-end, closed-end, or both open- and closed-end funds. Open-End Funds Closed-End Funds Shares in this type of fund are always publicly traded. These funds issue new shares in response to...
A stopped pipe is closed at one end and open at the other end. The frequency...
A stopped pipe is closed at one end and open at the other end. The frequency of the fundamental standing wave for the air in the pipe is 300 hz. What is the frequency of the next higher frequency standing wave? Answer: 900 Please explain why
Which of the following statements regarding differences between Exchange Traded Funds (ETFs) and Open End Mutual Funds is most incorrect? O ETFs trade like common stocks while Open End Mutual Funds do not. ETFs are typically less tax efficient than Open End Mutual Funds. ETFs tend to have lower fees than do Open End Mutual Funds. O ETFs reveal their composition daily while Open End Mutual Funds only report composition in quarterly or semi-annual intervals. ETFs may have options and...
O A U-shaped tube is closed at one end; the Po other end is open to the atmosphere. Water fills the side of the tube that includes the closed end, while oil, floating on the water, fills the side of the tube open to the atmosphere. The two liquids do not mix. O The density of oil is less than that of water Is the pressure at point A greater than, less than, or equal to the pressure p3? A....
Chapter 20 Homework Question: Distinguish between an open-end fund and a closed-end fund. O An open-end fund is always open during the day, a closed-end fund can sometimes close during the day. An open-end fund isssues new shares as new money is recceived; a closed-end fund only issues shares one tine. An open-end fund is never liquid; a closed-end fund is sometimes liquid O All of the above
drop down 1 options- •open ended • close ended
drop down 2 options- •is •is not
drop down 3 options- •are •are not
2. Understanding the difference between open-end and closed-end funds Categorizing Mutual Funds For each of the following statements regarding mutual funds, indicate whether it is true of open-end, closed-end, or both open- and closed-end funds. Open-End Funds Closed-End Funds Shares in this type of fund are always publicly traded. These funds issue new shares in response to...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago