Hong Jun Invested $10,000 in the Stock Market and Earned

question 4

Multiple Choice

Hong Jun invested $10,000 in the stock market and earned a before-tax return of 30% on his investment. The relevant tax rate for his capital gain income was 15%. What was Hong Jun's
After-tax return?

• A)22.5%
• B)25.5%
• C)4.5%
• D)None of the above is a correct answer.

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Definitions:

Stock Market

The Stock Market is a collection of markets where stocks (shares of ownership in businesses) are bought, sold, and issued.

Stock Price

The cost of purchasing a share of a company, which fluctuates based on market conditions and investor sentiment.

Sales Force

The group of employees within a company responsible for selling the company's products or services.

Health Coverage

Insurance or plan that provides for the payment of benefits as a result of sickness or injury, including coverage for medical and surgical expenses.