The System Under Which Australian Companies Pass on to Their

question 86

Multiple Choice

The system under which Australian companies pass on to their shareholders credit for corporate income taxes paid is called

• A) a double tax system.
• B) a franking credit.
• C) a classical tax system.
• D) a dividend imputation system.

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Definitions:

Optimal Risky Portfolio

An optimal risky portfolio is a collection of financial assets that maximizes expected return for a given level of risk or minimizes risk for a given level of expected return.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatter plot.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk.