A Mutual Fund Has Sales During the Year of $86

question 93

Multiple Choice

A mutual fund has sales during the year of $86 million and purchases of $94 million. If the average daily assets of the fund were $110 million, what was the fund turnover?

• A) 0.82
• B) 0.71
• C) 0.78
• D) 0.74
• E) 0.85

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, or property taxes.

Downward-Sloping

Characteristic of a curve on a graph indicating a decrease in one variable as another variable increases, often seen in demand curves.

Cournot Duopolists

Firms in a duopoly market structure who decide on their output level assuming the output of the competitor is fixed, leading to a strategic interdependence.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.