Chapter 4, Problem 27PS

Summary Introduction

Adequate information:

The bid ask spread pertaining to the value of trade accounts for 0.4%. the turnover rate of the portfolio accounts for 50%.

To calculate:

The Portfolio's total return decreased by the cost of trading

Introduction:

The turnover ratio of the fund refers to the measurement that reflects the percentage associated with the holding of specific fund, which have been turned over or replaced during the past year.