A Taxable Money Market Fund Has an Annual Return of 3.27

question 59

Multiple Choice

A taxable money market fund has an annual return of 3.27%. What is the equivalent aftertax yield if the tax rate is 24%?

• A)2.49%
• B)3.37%
• C)4.62%
• D)5.87%
• E)13.62%

---

Definitions:

Escalation of Commitment

Escalation of commitment involves continuing to invest in a decision despite evidence of its ineffectiveness, often due to sunk costs or pride.

Project Termination

The formal conclusion of a project, either because it has been completed, halted, or deemed no longer viable.

Creative Process

A series of steps or stages involved in generating innovative ideas or solutions, often including preparation, incubation, illumination, and verification.

Incubation

The process in problem-solving where an individual sets the problem aside for a while, allowing the subconscious to work on it.