What would be the holding period, if the turnover ratio is four times the stock?
Question
What would be the holding period, if the turnover ratio is four times the stock?
Solution
The holding period is the length of time an investment is held by an investor. The turnover ratio, on the other hand, is a measure of how frequently assets within a fund are bought and sold by the managers.
If the turnover ratio is four times, it means that the entire portfolio has been turned over four times in a year.
To calculate the holding period, you would take the total number of days in a year (365) and divide it by the turnover ratio.
So, if the turnover ratio is 4, the calculation would be:
365 / 4 = 91.25 days
Therefore, the holding period would be approximately 91 days.
Similar Questions
Context: What is Stock Turnover Ratio? Explain
An investor purchased 50 shares of a stock for $17.25 per share at the beginning of the quarter. If the investor sold all of the shares for $13.25 per share after receiving a $25.77 dividend payment at the end of the quarter, the holding period return is closest to Question 9Answera.−11.0%.b.−15.6%c.−20.2%.
You purchased a share of stock for $12. One year later you received $0.25 as a dividend and soldthe share for $12.92. What was your holding-period return?A. 9.75%B. 10.65%C. 11.75%D. 11.25%E. none of the above
If a company carries 13 weeks of supply, what is the inventory turnover?a.0.077b.676c.7.77d.4e.0.25
A company reports sales of Rs. 1,200,000, a gross margin of 25%, and an average inventory of Rs. 100,000. What is the inventory turnover ratio?9 times10 times6 times8 times
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.