A Bond and a Stock Portfolio Both Provided Unrealized Pretax

question 1

Multiple Choice

A bond and a stock portfolio both provided unrealized pretax return of 8% to a taxable investor.If the stocks paid no dividends we know that the ________.

• A) after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio
• B) after-tax return of the bond portfolio was higher than the after-tax return of the stock portfolio
• C) after-tax income of the stock portfolio was equal to the after-tax income of the bond portfolio
• D) after-tax income of the stock portfolio could have been higher or lower than the after-tax income of the bond portfolio depending on the marginal tax rate of the investor

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Definitions:

Sexual Response Cycle

The sequence of changes that occur in the body with increased sexual arousal, orgasm, and the return to the unaroused state, noted by William Masters and Virginia Johnson.

Vasocongestion

The swelling of bodily tissues caused by increased vascular blood flow and a localized increase in blood volume.

Excessive Sexuality

Behavior characterized by an overemphasis on or an uncontrollable urge for sexual activity, which may cause distress or impair daily functioning.

Gender-Related

Pertaining to or influenced by the social roles, behaviors, and expectations associated with being male or female.