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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 0.4% of the value of the

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Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid-ask spreads amount to 0.4% of the value of the trade. If the portfolio turnover rate is 40%, by how much is the total return of the portfolio reduced by trading costs? (Round your answer to 2 decimal places.) Reduction in portfolio retums

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