You have a $100,000 portfolio made up of 15 stocks. You trade each stock five times this

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You have a $100,000 portfolio made up of 15 stocks. You trade each stock five times this year and each time you trade, you pay about $30 in commissions and spread. You have no special knowledge, so you earn only the average market return of 12% on your investments. How much lower will your total return be because of your trades?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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