A Mutual Fund Had Average Daily Assets of $2

question 56

Multiple Choice

A mutual fund had average daily assets of $2.0 billion in 2016. The fund sold $500 million worth of stock and purchased $600 million worth of stock during the year. The fund's turnover ratio is

• A) 27.5%.
• B) 12%.
• C) 15%.
• D) 25%.
• E) 20%.

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Definitions:

Main Effect

The overall impact of an independent variable on a dependent variable in an analysis, ignoring the effects of other independent variables.

F Tests

A class of statistical tests used to compare the variances of two or more samples to assess the equality of population variances.

Two-way ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable, allowing for interactions between the factors to be analyzed.

Interaction Effect

The impact that the combination of variables has on a dependent variable, which is different from the effect of any single variable.