Rates of Return Should Normally Be Expressed on an Aftertax

question 18

Multiple Choice

Rates of return should normally be expressed on an aftertax basis,which means that:

• A)Returns on tax-sheltered pensions would be compounding at a different rate than personal sums
• B)Returns on tax-sheltered pensions would be compounding at the same rate as personal sums
• C)Returns are generally inaccurate
• D)Both a and b
• E)Both b and c

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Definitions:

Cardiovascular Benefits

Positive effects on the heart and blood vessels, typically resulting from regular exercise, healthy diet, and avoidance of harmful behaviors.

Cognitive Benefits

The positive effects on the brain's function, including improved memory, attention, and problem-solving capabilities, often resulting from engaging in physical, social, or mental challenges.

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Categories of diabetes, primarily including Type 1 (where the body does not produce insulin), Type 2 (characterized by insulin resistance), and gestational diabetes (occurring during pregnancy).

Psychological Benefits

The positive effects on mental health and well-being that can result from various activities or treatments.