Which of the Following Is the Most Diversified Investment Portfolio

question 127

Multiple Choice

Which of the following is the most diversified investment portfolio?

• A) equal amounts of stock in Google, Apple, and Microsoft
• B) municipal bonds issued by Los Angeles, Houston, and Atlanta
• C) one-year, five-year, and ten-year certificates of deposit (CDs)
• D) 100 ounces each of gold, silver, and platinum
• E) 100 shares of Walmart stock, an IBM bond, and a two-year CD

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Federal Income Taxes

Taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Allocated Tips

Tips that are assigned to an employee by their employer, typically in industries where tipping is customary, and are reported for tax purposes.

Medicare Taxes

Medicare Taxes are federal payroll taxes that fund the Medicare program, typically deducted from an employee's paycheck.

W-2 Form

A tax form issued by employers to employees detailing the employee's annual wages and the amount of taxes withheld from their paycheck, critical for preparing individual income tax returns.