A mutual fund has a portfolio worth $3.2 million consisting of 50,000 shares of company "A" at a price of $46 per share and 50,000 shares of company "B" at a price of $18 per share. The fund decided to sell 50,000 shares of company "B" and used the proceeds to buy 20,000 shares of company "C" at a price of $45. What is the portfolio turnover of the fund?
A mutual fund has a portfolio worth $3.2 million consisting of 50,000 shares of company "A" at a price of $46 per share and 50,000 shares of company "B" at a price of $18 per share. The fund decided to sell 50,000 shares of company "B" and used the proceeds to buy 20,000 shares of company "C" at a price of $45. What is the portfolio turnover of the fund?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 10P
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A mutual fund has a portfolio worth $3.2 million consisting of 50,000 shares of company "A" at a price of $46 per share and 50,000 shares of company "B" at a price of $18 per share. The fund decided to sell 50,000 shares of company "B" and used the proceeds to buy 20,000 shares of company "C" at a price of $45.
What is the portfolio turnover of the fund?
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