The Aggressive Eastern Fund sold $278 million of assets during the year and purchased $295 million of new assets. The average daily assets of the fund were $438 million. What is the turnover rate?

Question

Quizplus · Accepted Answer

The turnover rate is calculated by dividing the lesser of total sales or purchases by the average daily assets. Here, sales are $278 million and purchases are $295 million, so we use sales ($278 million) as it is the lesser amount. The average daily assets are $438 million. Thus, the turnover rate = ($278 million / $438 million) * 100 = 63.47%. Rounded to the nearest whole number, the turnover rate is approximately 63%, but since that option is not available and the closest correct option is 67, there seems to be a mistake in the calculation or the options provided. Based on the provided options and calculation, the intended correct answer appears to be 67, indicating a possible error in the question or answer choices.

The Aggressive Eastern Fund Sold $278 Million of Assets During