Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask...

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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 1.8%

You purchased 1,700 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid a front-end loa

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Answer 1

Answer #1

Portfolio turnover ratio = minimum number of securities brought/sold÷ total portfolio value.

Portfolio turnover ratio = 50%

There is charge of 1.8% in form of commission for buying and selling security.

Falling percentage = portfolio turnover ratio x charge in the form of commission.
= 50×1.8%
=0.9%

Answer= 0.9%

b. Rate of return = 7.64%

Beg Value - 25 Endivalue food and = [25 - 25 x2)) - front load Expense fatto growth Expense to x1-94] x 112 % 24-5 z 26.918 E

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Answer 2

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