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Required: Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid - ask spreads amount to 1 . 3
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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bidask spreads amount to of the value of the trade. If the portfolio turnover rate is by how much is the total return of the portfolio reduced by trading costs?
Round your answer to decimal place.
Fall in returns
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