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NEW QUESTION: 1
Which of the following statements regarding closed-end investment companies is false?
A. The closed-end investment company does not pay taxes on the dividend and capital gain income it earns and distributes to its shareholders.
B. Closed-end companies may be either diversified or non-diversified.
C. Shares of a closed-end company may sell for below the fund's net asset value.
D. A closed-end investment company may not issue preferred stock.
Answer: D
Explanation:
Explanation/Reference:
Explanation: The false statement is that a closed-end investment company may not issue preferred stock.
Although open-end companies (mutual funds) are prohibited from doing so, this is not a restriction governing closed-end companies. Closed-end companies shares sell on exchange floors and may trade below net asset value. Closed-end companies may be either diversified or non-diversified, and the income earned by the company and distributed to its shareholders is not taxed at the investment company level. It is taxed at the shareholder level only.
NEW QUESTION: 2
The Interest Rate Parity Theorem should work because, when one sells a low interest rate currency to invest in a high interest rate currency and hedges the currency risk:
A. The cost of hedging is given by the forward points, which are equal to the interest rate differential between the two currencies
B. The high interest rate currency will depreciate
C. The profit from the appreciation of the high interest rate currency has been hedged away
D. Interest rates are mean reverting, which means the low interest rate will tend to rise and the high interest rate will tend to fall
Answer: A
NEW QUESTION: 3
vMotion can be performed between which three physical boundaries? (Choose three.)
A. Between two vCenter Server Systems
B. Between two vCenter Server Datacenter objects
C. Between two vSphere Distributed Virtual Switches
D. Between two NFS datastores
E. Between two VMware NSX Layer 4 segments
Answer: A,B,C