A Mutual Fund Had Average Daily Assets of $4

question 66

Multiple Choice

A mutual fund had average daily assets of $4.0 billion in 2012.The fund sold $1.5 billion worth of stock and purchased $1.6 billion worth of stock during the year.The fund's turnover ratio is

• A)37.5%.
• B)22%.
• C)15%.
• D)45%.
• E)20%.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods within a given period, indicating efficiency in inventory management.

Average Inventory

The mean amount of stock held by a company over a certain period, used to manage inventory levels efficiently.

Sales

The activities involved in selling goods or services to customers.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing its total liabilities by its total assets.