SIE Understanding Products and Their Risks Practice Question 91

Correct Answer: C

Explanation:

C: Choice C is correct because it establishes the rule that investment companies value their portfolios at the next calculated net asset value (NAV), which happens when the markets close. ETFs need a pricing exemption because their shares trade on an exchange, so the market value is not necessarily the same as the NAV at any given time. Choices A, B, and D are incorrect.