What Classification of Expense Is It If You Contribute to a 401K

question 17

Multiple Choice

What classification of expense is it if you contribute to a 401K or 403B account provided by your work?

• A)Home Expenses
• B)Personal Expenses
• C)Savings
• D)Discretionary Spending

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Definitions:

Standard Deviation

Square root of the variance.

Alpha

In investing, alpha is a measure of the performance of an investment relative to a suitable benchmark index, indicating excess or deficient return.

Security

A financial instrument representing ownership in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.

Rate of Return

The profit or deficit from an investment during a designated time frame, represented as a fraction of the investment's initial value.