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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 2.9% of the value of the
Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 2.9% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced by trading costs?(Round your answer to 1 decimal place.)
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