Q8 Q6

total number of shares outstanding for the stocks that are added or deleted from the index is the same as the average number of shares outstanding for S\&P 500 stocks. The investor's per stock share turnover is 6. (Round to one decimal place.) Figure FIGURE 13.3 NYSE Annual Share Turnover, 1970-2015 The plot shows the annual share turnover (number of shares traded in the year/total number of shares). Such high turnover is difficult to reconcile with the CAPM, which implies that investors should hold passive market portfolios. Note also the rapid increase in turnover up through 2008, followed by a dramatic decline post-crisis. Source: www.nyxdata.com