A mutual fund had average daily assets of $4.7 billion in 2016. The fund sold $2.2 billion worth of stock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio is

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Quizplus · Accepted Answer

The turnover ratio is calculated as the lesser of purchases or sales divided by the average daily assets. Here, the lesser amount is $2.2 billion (sales), so the turnover ratio is $2.2 billion / $4.7 billion = 0.468, or 46.8%.

A Mutual Fund Had Average Daily Assets of $4