Eastern States Mutual Fund Sold $85 Million of Assets During

question 8

Multiple Choice

Eastern States Mutual Fund sold $85 million of assets during the year and purchased $92 million of new assets. The average daily assets of the fund were $340 million. What is the fund's turnover rate for the year?

• A) .25
• B) .27
• C) .52
• D) .94
• E) 1.07

---

Definitions:

Cost-Minimization Rule

A principle in economics that suggests a firm should produce any given output at the lowest possible cost.

Statements

Assertions or declarations, often formal and written, detailing facts or opinions.

Least Costly Combination

An economic principle that firms seek to achieve by using the combination of factors of production that minimizes their costs while producing a given level of output.

Marginal Product Data

Information regarding the additional output that can be obtained by adding one more unit of a particular input, holding all other inputs constant.