You Have Invested $10,000 in RBC Stock and $21,000 in TD

question 28

Multiple Choice

You have invested $10,000 in RBC stock and $21,000 in TD stock.If you expect the return on RBC to be 5% in the next year,and the return on TD to be 6.5%,what is the expected return for your portfolio?

• A)5.75%
• B)5%
• C)6.5%
• D)6%
• E)5.5%

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Definitions:

Self-Employment Tax

A levy that encompasses Social Security and Medicare contributions, mainly targeted at individuals who are self-employed.

Pharmaceutical Company

A business involved in the research, development, manufacturing, and distribution of medications.

Self-Employment Income

Self-Employment Income refers to earnings derived from one’s own business, professional practice, or freelance work, as opposed to earning a salary or wages from an employer.

MACRS

The Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. for tax purposes, allowing for accelerated asset expense deductions over time.