Asteria Earned a $25,500 Salary as an Employee in 2016

question 75

Multiple Choice

Asteria earned a $25,500 salary as an employee in 2016. How much should her employer have withheld from her paycheck for FICA taxes? (rounded to the nearest whole dollar amount)

• A) $370
• B) $1,581
• C) $1,951
• D) $3,902

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Definitions:

Perfectly Positively Correlated

A relationship between two variables where they move in the same direction at the same time with a correlation coefficient of +1.

Portfolio Risk

The potential for loss or underperformance across a collection of investments held by an individual or institution.

Expected Return

The anticipated return on an investment, taking into account all possible outcomes, their probabilities, and their corresponding returns.

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.