Purpose – The purpose of this paper is to examine the conditions under which discount risk leads to closed‐end funds trading at a discount. Design/methodology/approach – A model of investor portfolio choice is developed in which investors face proportional fees for holding managed funds...

Purpose – This paper aims to investigate the performance of estimators of the bid-ask spread in a wide range of circumstances and sampling frequencies. The bid-ask spread is important for many reasons. Because spread data are not always available, many methods have been suggested for...