The Two Major Standards of Risk Are: ________

question 36

Multiple Choice

The two major standards of risk are: ________.

• A) total risk and the relative index of systematic or nondiversifiable risk.
• B) standard deviation and unsystematic risk.
• C) total risk and the standard deviation.
• D) beta and the relative index of systematic or nondiversifiable risk (beta).

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Definitions:

Married Filing Separately

A filing option for married partners that enables them to report their personal income, deductions, and exemptions separately on individual tax returns.

Modified AGI

Adjusted Gross Income with certain deductions and exclusions added back in, used to determine eligibility for certain tax benefits.

Adjusted Gross Income

An individual's total gross income minus specific deductions allowed by the IRS, used to determine tax liability.

Deduction

An expense that can be subtracted from gross income to reduce the taxable income.