A ____ is the value of the smaller of purchases or sales during a time period divided by the average total asset value during the period.

Question

Quizplus · Accepted Answer

The given description matches with the definition of portfolio turnover rate, which measures the frequency with which assets in a portfolio are replaced by new ones. It is calculated by dividing the smaller of purchases or sales during a time period by the average total asset value during the period. Option A, operating expense ratio, measures the operating expenses of a fund as a percentage of its net asset value. Option B, net asset value rate, represents the value of a fund's assets minus its liabilities divided by the number of outstanding shares. Option D, unit investment ratio, is not a commonly used performance measure in finance.

A ____ Is the Value of the Smaller of Purchases