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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 1.8% 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 1.8% 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.) Fall in returns You purchased 1,700 shares of the New Fund at a price of $25 per share at the beginning of the year. You paid a front-end load of 2%. The securities in which the fund invests increase in value by 12% during the year. The fund's expense ratio is 1.9%. What is your rate of return on the fund if you sell your shares at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 6.37 %
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