Kyle and Liza Are Married and Under 65 Years of Age

question 62

Multiple Choice

Kyle and Liza are married and under 65 years of age. During 2018, they furnish more than half of the support of their 19-year old daughter, Kendra, who lives with them. She graduated from high school in May 2017. Kendra earns $15,000 from a part-time job, most of which she sets aside for future college expenses. Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them. Liza's father, who died on January 3, 2018, at age 90, has for many years qualified as their dependent. How many dependents can Kyle and Liza claim?

• A) None
• B) One
• C) Two
• D) Three

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Definitions:

Asset Allocation

The strategic division of an investment portfolio across various asset classes, such as stocks, bonds, and cash, to optimize returns and manage risk.

Abnormal Return

A return on an investment that deviates from the expected normal or benchmark return.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured, often used in fund management.

Sharpe's Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.