However, it is not to say that a high portfolio turnover ratio is not desirable. A high turnover ratio is justified if the fund manager is able to generate comparatively higher returns (on a risk-adjusted basis) than a similar-style fund with a low turnover ratio. If the ratio...
Calculate your average portfolio size. For a given period, add the beginning and ending value of your portfolio, then divide the number by two. For example, suppose you want to calculate a monthly turnover in which the value is $22,000 on April 1 and $22,900 on April 30. The average...
How do you calculate portfolio weights? What are the weights and how do they change?Portfolio:A portfolio is a collection of individual assets held by a single investor. The goal of a portfolio is to spread the risk to different investments and thus reduce the expected v...
It suggests that 7 per cent of equity funds trade over 100 per cent of their assets every year, which increases their total expense ratios (TERs) by 40 basis points (bps). It reveals that a 65 per c...
How can one calculate intrinsic value of stocks? How do you determine your expected discount rate on a stock investment? Is a tangent line to a circle infinite? Does it go on forever or just sometimes? Compute the exact value of the following sum: \sum_{k=1}^{\infty} \frac{2^k}{...
How to calculate return on assets (ROA)? Explain what ROA measures.Total Assets:The total assets of a company are reported on the left-hand side of the balance sheet and they include current assets and fixed assets. Fixed assets are long-term assets that are further classified into ta...
Operators need to know how to calculate restaurant cost of goods sold in order to achieve strategic menu pricing. Restaurant COGS also enable restaurateurs to forecast profit margins for individual menu items, days of the week, different services (breakfast vs lunch vs dinner), and the business ...
How to Calculate Resource Utilization Rate Even though there’s only one definition of resource utilization, there are different utilization rates to measure which can be used for differentresource planningpurposes. Here are the main resource utilization formulas. ...
Adjusting the nominal return to compensate for factors such as inflation allows you to determine how much of your nominal return is real return. Knowing the real rate of return of an investment is very important before investing your money. That’s because inflation can reduce the value as time...
However, if you want to use average total assets, add total assets from the beginning of the period to the ending period value of total assets and divide the result by two to calculate the average total assets. Divide net income by the total assets or average total assets to obtain the ...