Focusing an Investment Portfolio with Ethical Investments

question 23

Multiple Choice

Focusing an investment portfolio with ethical investments:

• A) allow investors to integrate personal values and social concerns with their investment objectives.
• B) potentially creates adverse diversification issues for the investor increasing their investment risk exposure
• C) both a and b
• D) is not likely to be constrained by a lack of information available from many companies regarding this issue.

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Definitions:

Personal Income Tax

A tax that individuals pay on their income to the government, often levied at progressive rates where the tax rate increases as income increases.

Income

The money received by an individual or business in exchange for providing a good or service or through investing capital.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income, used in progressive tax systems to ensure higher incomes are taxed at higher rates.

Federal Income Tax

The United States federal government imposes a financial charge on the yearly revenues of individuals, corporations, trusts, and other legal entities.