A sector fund specializing in commercial bank stocks had average daily assets of $8.6 billion during the year. This fund sold $3.94 billion worth of stock during the year, and its turnover ratio was 0.45. How much stock did this mutual fund purchase during the year?

A sector fund specializing in commercial bank stocks had average daily assets of $8.6 billion during the year. This fund sold $3.94 billion worth of stock during the year, and its turnover ratio was 0.45. How much stock did this mutual fund purchase during the year?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A sector fund specializing in
commercial bank stocks had average
daily assets of $8.6 billion during the
year. This fund sold $3.94 billion
worth of stock during the year, and its
turnover ratio was 0.45. How much
stock did this mutual fund purchase
during the year?

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