An Asset Has an Average Annual Historical Return of 11

question 62

Multiple Choice

An asset has an average annual historical return of 11.6 percent and a standard deviation of 17.8 percent.What range of returns would you expect to see 95 percent of the time?

• A) -41.8 to + 65.0 percent
• B) -34.4 to + 53.6 percent
• C) -24.0 to + 47.2 percent
• D) -6.2 to + 29.4 percent
• E) -5.4 to + 41.0 percent

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Definitions:

Taxable Income

The portion of income upon which tax is owed, calculated by subtracting allowable deductions from gross income.

Married Taxpayers

Individuals who are married and may choose to file joint or separate income tax returns.

Filing Jointly

A tax filing status that allows married couples to file their taxes together, combining their income and deductions, potentially leading to lower tax liability.

Tax Credit

An amount subtracted from the income tax owed; the most popular credits are the Child Care Tax Credit and the Earned Income Credit.