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:

Muscle Groups

Collections of muscles in the body that work together to perform specific movements or functions.

Injury

Physical harm or damage to someone's body caused by an accident or violence.

Lofstrand/Canadian

Refers to a specific type of crutches with forearm support, commonly used in Canada.

Forearm Crutch

A type of support device used to assist with walking, which is held and supported by the forearm.