Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 0.4% of
1 answer:
Answer: 0.4%
Explanation:
Given that,
At every time a fund manager trades stock, then
Transaction costs = 0.4% of the value of the trade
Portfolio turnover rate = 50% ; On an average, 50% of the portfolio stock is sold and exchange with the other securities every year.
Trading costs on selling orders = 0.4%
Trading costs on buying orders = 0.4%
Therefore,
Total return of the portfolio reduced by trading costs:
= 0.4%
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Answer:
$ 11,799 is the principal balance of the note payable.
Explanation:
The Interest expense for the installment note on the year of the December 31, year can be determined by the following equation that are mention below
Now the Principal balance of the component in $15,179 payment of the December 31, year 1 can be determined by the
=$ 11,799