Asked by isabella hernandez on May 09, 2024
Verified
The ratio of trading activity of a portfolio to the assets of the portfolio is called the ________.
A) reinvestment ratio
B) trading rate
C) portfolio turnover
D) tax yield
Portfolio Turnover
A measure of how frequently assets within a portfolio are bought and sold by the manager over a specific period.
- Comprehend the principle of fund turnover and its influence on fund effectiveness and returns for investors.
Verified Answer
ER
Emily RodriguezMay 10, 2024
Final Answer :
C
Explanation :
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.
Learning Objectives
- Comprehend the principle of fund turnover and its influence on fund effectiveness and returns for investors.