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The Real Rate of Return on a Taxable Investment Yielding

Question 151

Multiple Choice

The real rate of return on a taxable investment yielding 8 percent annually would be ____ percent if the investor were in the 15 percent marginal tax bracket and inflation were 2 percent.


A) 6.80 percent
B) 6.00 percent
C) 4.80 percent
D) 5.10 percent

Correct Answer:

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