A Taxable Money Market Fund Has an Annual Return of 4.62

question 5

Multiple Choice

A taxable money market fund has an annual return of 4.62 percent.What is the equivalent aftertax yield if the tax rate is 27 percent?

• A) 1.25 percent
• B) 3.37 percent
• C) 4.62 percent
• D) 5.87 percent
• E) 6.13 percent

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Definitions:

Biologically Adaptive

Traits or behaviors that enhance an individual's ability to survive and reproduce within their environment.

Group Attribution Error

The tendency to erroneously attribute the behavior or attitudes of individual members to the characteristics of the group as a whole.

Extremity Bias

A cognitive bias where individuals tend to remember and give disproportionate weight to the most extreme examples or experiences.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small data sets or limited information.