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1. After taxes: If Tobias is in a 35% bracket for income taxes (state and federal combined), and if only 40% of a capital gain is likely to be taxable at retirement, then which investment is better?
2. If inflation seems likely to rise to about 5% from its current insignificant level, then which investment seems better?
3. Describe the relationship of risk to return for the three investments. Are all three on the "efficient frontier" for the risk/return trade-off?

Microeconomics, Economics

  • Category:- Microeconomics
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