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‘30% turnover should be enough to reduce long-term volatility by about 25%’The empirical study also shows a significant concave relation, similar to the pattern found in the literature. Furthermore, low-volatility stocks themselves also have lower turnover indicating less activity of overconfident traders in this market segment, bringing down expected returns. Because low-volatility stocks are much larger than high-volatility stocks they are also more liquid. Trading those stocks is therefore more cost-efficient than trading high-volatile stocks.