What would be the holding period, if the turnover ratio is four times the stock?
Question
What would be the holding period, if the turnover ratio is four times the stock?
Solution
The holding period is the length of time an investment is held by an investor. The turnover ratio, on the other hand, is a measure of how frequently assets within a fund are bought and sold by the managers.
If the turnover ratio is four times, it means that the entire portfolio has been turned over four times in a year.
To calculate the holding period, you would take the total number of days in a year (365) and divide it by the turnover ratio.
So, if the turnover ratio is 4, the calculation would be:
365 / 4 = 91.25 days
Therefore, the holding period would be approximately 91 days.
Similar Questions
Which of the following is an asset utilization ratio?Multiple Choicereturn on assetsreceivables turnoverreturn on equitycurrent ratio
Cross Corporation has Net Income of $4,095. Their retention ratio is 65%. How much will they payout in dividends this year?
So if $200 is invested at an interest rate of 5% compounded quarterly, then the amount after 4 years is
The three profitability performance ratios are ______.Multiple select question.return on equityinventory turnoverearnings per sharecurrent ratioreturn on sales
The product of average total assets and the asset turnover ratio isSelect answer from the options belowprofit.profit margin.return on assets.net sale
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.