A Mutual Fund Had Average Daily Assets of $4

question 108

Multiple Choice

A mutual fund had average daily assets of $4.0 billion in 2016. 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:

Thorstein Veblen

An American economist and sociologist known for his theory of the leisure class and critique of consumer culture.

Leisure Class

A segment of society that derives its income from investments, inheritance, or other non-labor sources, allowing its members to focus on leisure activities and cultural pursuits rather than traditional labor.

Tax Rebate

A refund on taxes when the tax liability is less than the taxes paid.

Consumer Spending

The total amount of money spent by households in an economy on goods and services, excluding purchases of new housing.