A Mutual Fund Had Average Daily Assets of $4

question 78

Multiple Choice

A mutual fund had average daily assets of $4.7 billion in 2016. The fund sold $2.2 billion worth of stock and purchased $3.6 billion worth of stock during the year. The fund's turnover ratio is

• A) 37.5%.
• B) 22.6%.
• C) 15.3%.
• D) 46.8%.
• E) 20.7%.

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Definitions:

Financial Statements

Official documentation of a company, individual, or entity's financial transactions and status, usually comprising the income statement, balance sheet, and statement of cash flows.

Internal Accounting Staff

Employees within an organization responsible for overseeing and managing financial records and transactions.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, overseeing the overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; commonly abbreviated as GAAP.