The Required Return Is ________ That Is Necessary to Compensate

question 100

Multiple Choice

The required return is ________ that is necessary to compensate for the risk investment i will contribute to the portfolio.

• A) the realized return
• B) the highest return
• C) the lowest return
• D) the expected return

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Definitions:

Maximum Contribution

The highest amount that can be contributed to a financial account or plan, such as a retirement account, in a given period, often with tax implications.

Roth IRA

is an individual retirement account allowing withdrawals on a tax-free basis, provided certain conditions are met, financed by after-tax dollars.

Coverdell Education Savings Account

A tax-advantaged savings account designed to pay for education expenses at both secondary and post-secondary levels.

Traditional IRA

An individual retirement account that offers tax deferral on contributions and investment gains, with taxes paid on money withdrawn during retirement.