Answer:
The correct answer is 30.10%.
Explanation:
According to the scenario, the given data are as follows:
Stock A price = $30
Value of stock A = $30 × 210,000 = $6,300,000
Stock B price = $35
Value of stock B = $35 × 310,000 = $10,850,000
Stock C price = $10
Value of stock C = $10 × 410,000 = $4,100,000
Stock D price = $15
Value of stock D = $15 × 610,000 = $9,150,000
So, We can calculate the portfolio turnover rate by using following formula:
Portfolio turnover rate = Value of stocks sold or purchase / Market Value of Assets
Where, Market Value of Assets = Value of stock A + Value of stock B +Value of stock C + Value of stock D
= $6,300,000 + $10,850,000 + $4,100,000 + $9,150,000
= $30,400,000
And Value of stock sold = value of stock D = $9,150,000
So, by putting the following values in the formula:
= Turnover Rate = 9,150,000 / 30,400,000
= 30.10%
Hence, the portfolio turnover rate is 30.10%.
