The new fund had average daily assets of $3.8 billion in the past year. The fund sold $416 million and purchased $516 million worth of stock during the year. What was its turnover ratio? (round your answer to 2 decimal places.)

The excess of purchases over sales is most likely due to new inflows into the fund.

Therefore only $416 million of stock held by the fund was replaced by new holdings.

Turnover Ratio = Total sales / total assets = $416/$3,800 = 10.95% (Rounded to 2 decimals)

Turnover Ratio = 10.95%