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You have a security which offers 8% after-tax annual return. You're considering investing on a money market fund that provides before-tax annual return of 10%. What should be the appropriate tax rate, giving you the same before-tax return for both securities? Multiple Choice O O O C 10%. 20%. 30%. 40%. More information is required.

You have a security which offers 8% after-tax annual return. You're considering investing on a money market fund that provides before-tax annual return of 10%. What should be the appropriate tax rate, giving you the same before-tax return for both securities? Multiple Choice O O O C 10%. 20%. 30%. 40%. More information is required.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You have a security which offers 8% after-tax annual return. You're considering investing on a money market fund that provides before-tax annual return of 10%. What should be the appropriate tax rate, giving you the same before-tax return for both securities? Multiple Choice O O 10%. 20%. 30%. 40%. More information is required.
Transcribed Image Text:You have a security which offers 8% after-tax annual return. You're considering investing on a money market fund that provides before-tax annual return of 10%. What should be the appropriate tax rate, giving you the same before-tax return for both securities? Multiple Choice O O 10%. 20%. 30%. 40%. More information is required.
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