Question
1 . Assume the annual return for the lowest turnover portfolio is 15% and the annual return for the highest turnover portfolio is 10%. If
1 . Assume the annual return for the lowest turnover portfolio is 15% and the annual return for the highest turnover portfolio is 10%. If you invest $105,000 and have the highestturnover, how much lower will the value of your portfolio be at the end of 10 years than if you had had the lowestturnover? At the end of tenyears, your portfolio will be lower by the amount of $ _______ (Round to the nearestdollar.)
2.You have a $110,000 portfolio comprising 13 stocks. You trade each stock five times this year and each time youtrade, you pay about $30 in commissions and spread. You have no specialknowledge, so you earn only the average market return of 14% on your investments. How much lower will your total return be because of yourtrades?
As a result of yourtrades, your total return will be __________ % lower. (Round to two decimalpoints.)
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