Shelley Is Self-Employed in Texas and Recently Attended a Two-Day

question 67

Multiple Choice

Shelley is self-employed in Texas and recently attended a two-day business conference in New Jersey.After Shelley attended the conference,she had dinner with an old friend who lived nearby.Shelly documented her expenditures (described below) .What amount can Shelley deduct?

• A)$2,850.
• B)$2,740.
• C)$1,850 if Shelley itemizes the deductions.
• D)All of these expenses are deductible but only if Shelley attends a conference in Texas.
• E)None of the expenses are deductible because Shelly visited her friend.

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Definitions:

APT

APT, or Arbitrage Pricing Theory, is a financial model that estimates the returns on an asset based on its risk in relation to multiple risk factors.

Well-Diversified Portfolio

A collection of investments that spread out risk by incorporating a wide variety of assets, thereby minimizing the impact of any single asset's performance on the overall portfolio.

Fama and French

Two economists known for their research on the factors that influence stock returns, notably the three-factor model which includes market risk, size, and value factors in explaining stock returns.

Multifactor Model

A financial model that evaluates securities by considering multiple economic and financial factors to explain asset prices and predict investment returns.