The total return of the portfolio reduced by trading costs

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Reference no: EM13847144

Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 1.9% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs? (Enter your answer as a percentage rounded to two decimal places.)

Total return reduced by trading costs %

Reference no: EM13847144

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The total return of the portfolio reduced by trading costs : Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 1.9% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced b..

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