You are evaluating a closed-end mutual fund and see that its price is different from its net asset value (NAV). The fund has an expense ratio (epsi) of 2.80 4.00. What is the reason for the difference between the fund's price and its NAV?
1) The fund's price is higher than its NAV due to high demand from investors.
2) The fund's price is lower than its NAV due to low demand from investors.
3) The fund's price is higher than its NAV due to the expense ratio.
4) The fund's price is lower than its NAV due to the expense ratio.