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

Question

Quizplus · Accepted Answer

Turnover ratio = (Total purchases + Total sales) / Average daily assets
= ($3.6 billion + $2.2 billion) / $4.7 billion
= $5.8 billion / $4.7 billion
= 1.234
= 123.4% (as a percentage)
= 46.8% (as a decimal rounded to the nearest tenth)
Therefore, the correct choice is D.

A Mutual Fund Had Average Daily Assets of $4