This is a major change in the way investors operate – I would say it is more of a major deterioration. Could it be related to technological developments, to our ability to trade securities instantly on our smartphones, or to the immediate access to information the Internet provides? Or did investors hold onto their securities longer in the 1950s because they had access to little information?
Anyway, would you know how long you keep your own securities on average? What makes it possible to calculate this average holding period is what is called the “turnover rate” of a portfolio. There are two ways to calculate this rate.
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