You have a $101,000 portfolio made up of 15 stocks. You trade each stock five times this
Question:
You have a $101,000 portfolio made up of 15 stocks. You trade each stock five times this year and each time you trade, you pay about $35 in commissions and spread. You have no special knowledge, so you earn only the average market return of 15% on your investments. How much lower will your total return be because of your trades?
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Heres how to calculate the impact of trading costs on your portfolio return 1 Calculate the total tr...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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