Question

A mutual fund sold $60 million of assets during the year and purchased $78 million in assets. If the average daily assets of the fund were $256 million, what was the fund turnover? (Enter your answer as a percent rounded to 2 decimal places.)

Answer 1

Formula for Fund Turnover Ratio:-

Fund Turnover Ratio = Minimum of Fund purchased or sold/Average daily Assets

Mutual Funds purchased for = $78 million

Mutual Funds sold for = $60 million

so, the minimum of the above to is $60 million

Fund Turnover Ratio = $60 million/256 million

= 23.44%

So, the fund turnover is 23.44%

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