Which of the Following Is Not True Regarding a Tax

question 91

Multiple Choice

Which of the following is not true regarding a tax refund loan?

• A)It is an inexpensive way to borrow money.
• B)It lets you get an advance on a tax refund.
• C)APRs as high as 774 percent have been reported.
• D)An alternative to these loans is to ask for more time to pay a bill.
• E)A cash advance on your credit card may cost less.

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Definitions:

Jensen's Measure

A performance evaluation measure that calculates the excess return a fund generates over its expected return, given its level of risk.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities such as U.S. Treasury bonds.

Beta

A measure of a security's volatility in relation to the overall market; a beta greater than 1 indicates greater volatility than the market.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio is measured, often used to assess the skill of portfolio managers.