Suppose that every time a fund manager trades stock, Ask an Expert

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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 1.5% of the value of the trade.

If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 1 decimal place.) Fall in returns ______%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92843225

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