Martha Is Self-Employed in 2014

question 29

Multiple Choice

Martha is self-employed in 2014.Her business profits are $140,000.What is her self-employment tax?

• A)$21,420
• B)$18,568
• C)$18,159
• D)None of the above.

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Definitions:

Complete Portfolio

A complete portfolio represents a combination of risk-free assets and risky assets, designed to balance potential returns with the investor's risk tolerance.

Risk-Free Asset

An investment that is assumed to have no risk of financial loss, often represented by government bonds or treasury bills.

Risky Asset

An investment that holds a certain degree of risk, possibly leading to loss, such as stocks or commodities.

Reward-To-Variability Ratio

A ratio that compares the expected return of an investment to the risk (variability) of that investment, often used to gauge the performance of investment portfolios.