The ratio of trading activity of a portfolio to the assets of the portfolio is called the ________.

Question

Quizplus · Accepted Answer

Portfolio turnover is the correct term for the ratio of trading activity to the assets of the portfolio. Reinvestment ratio refers to the proportion of earnings that are reinvested rather than paid out as dividends. Trading rate is not a commonly used term in finance, and tax yield refers to the taxable income earned by an investment rather than the trading activity of a portfolio.

The Ratio of Trading Activity of a Portfolio to the Assets