2 votes

How to interpret the turnover formula?

This is a very standard approach for measuring turnover from portolio weights. First, assume there are no buys or sales during the month. Then we can predict the weights at the end of the month from ...
nbbo2's user avatar
  • 11.2k
2 votes

How to interpret the turnover formula?

To add onto Julien's comments, you should add the labels for the variables and what they mean. The turnover (or change in weight per asset $i$) is due to this term: $Retained\:Weights=\frac{w_i (1+r_{...
KaiSqDist's user avatar
  • 805

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