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:

Manufacturing Departments

Specialized subdivisions within a manufacturing facility where different stages of the production process are carried out.

Markup

A term used in accounting and finance to describe the difference between the cost of a good or service and its selling price.

Activity At Capacity

The level of operations where a company or a production process is utilizing all available resources without any waste.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not change with the level of production, such as salaries of managers and depreciation of factory equipment.