What provides a measure of the level of a mutual fund's trading activity?
A)Trading ratio
B)Expense ratio
C)Exchange ratio
D)Turnover ratio

Question

Quizplus · Accepted Answer

Turnover ratio provides a measure of the level of a mutual fund's trading activity. It represents the percentage of a fund's holdings that have been bought and sold during a particular period of time, usually one year. A high turnover ratio can indicate that the fund manager is actively trading securities, which can increase costs and potentially result in capital gains taxes for investors. A low turnover ratio may indicate a more passive investment approach.

What Provides a Measure of the Level of a Mutual