bid ask spread

问题如下：

Consider an ETF with the following trading costs and management fees:

• Annual management fee of 0.40%
• Round-trip trading commissions of 0.55%
• Bid–offer spread of 0.20% on purchase and sale

Excluding compound effects, the expected total holding-period cost for investing in the ETF over a nine-month holding period is closest to:

选项：

A.

1.05%.

B.

1.15%.

C.

1.25%.

解释：

A is correct. The expected total holding-period cost for investing in the ETF over a nine-month holding period is calculated as follows: Total holding-period cost = Annual management fee + Round-trip trading commissions + Bid–offer spread on purchase/sale.

Total holding-period cost = (9/12) × (0.40%) + 0.55% + 0.20% = 1.05%