# Turnover Rate

I want to calculate the turnover rate of my portfolio. I am not sure if i am doing it correctly. I used the following formula from http://breakingdownfinance.com/trading-strategies/passive-investing/portfolio-turnover/ TO= (1/T)*Sum of all period(sum of all transactions(abs(New Weight - Old Weight))) T=number of periods For Example i have 10 stocks. 10% each in beginning period (bop). I sold all of first 5 stocks and add the remainder to the other 5 stocks. Stock1 Stock2 Stock3 Stock4 Stock5 Stock6 Stock7 Stock8 Stock9 Stock10 bop 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% eop 0.0% 0.0% 0.0% 0.0% 0.0% 20.00% 20.00% 20.00% 20.00% 20.00% Diff -10.0% -10.0% -10.0% -10.0% -10.0% 10.0% 10.00% 10.0% 10.0% 10.0% Using the formula, i get 100% from sum(abs( row of Diff)) I thought turnover rate is the rate the fund replaces its holding. In the example, i only replace 50% of the portfolio. not 100%. http://www.investopedia.com/articles/mutualfund/09/mutual-fund-turnover-rate.asp what am i doing wrong? Thanks