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1.
Which investment can employ leverage by issuing preferred shares?
Choose wisely. There is only one correct answer.
Closed-end funds. Closed-end funds can issue preferred shares, but exchange-traded funds cannot.
2.
Which investments are priced only once a day at market close?
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Mutual funds. Exchange-traded funds are not priced in this manner.
3.
Which investments may issue debt to leverage their net assets?
Choose wisely. There is only one correct answer.
Closed-end funds. Closed-end funds can issue debt or preferred shares for leveraging purposes. Mutual funds cannot.
4.
Which vehicle does not continuously offer new shares?
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Closed-end funds. The other two do.
5.
What trait do closed-end funds and exchange-traded funds have in common?
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They all have underlying portfolios with net asset values. The other choices are false.