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IIA-CFSA · Question #491

IIA-CFSA Question #491: Real Exam Question with Answer & Explanation

The correct answer is C. That the UIT will, buy back an investor's request at their approximate net asset value. See the full explanation below for the reasoning.

Question

A UIT typically issues redeemable securities (or "units"), like a mutual fund, which means:

Options

  • AThat the UITs typically will make a one-time "public offering"
  • BA UIT does not activity trade its investment portfolio
  • CThat the UIT will, buy back an investor's request at their approximate net asset value
  • DAll of these

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