Answered

The New Fund had average daily assets of $2.7 billion in the past year. The fund sold $405 million and purchased $505 million worth of stock during the year. What was its turnover ratio?

Answer :

Answer:

turnover ratio  = 16.87 %

Explanation:

given data

average daily assets = $2.7 billion

fund sold = $405 million

purchased = $505 million

solution

we get here turnover ratio that is express as

turnover ratio = [tex]\frac{total\ stock\ sold}{daily\ assets}[/tex]    ................1

put here value and we get turnover ratio

turnover ratio = [tex]\frac{405\ million}{2400\ million}[/tex]

turnover ratio  = 0.16875

turnover ratio  = 16.87 %

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