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Once the portfolio is constructed it must be

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Once the portfolio is constructed, it must be continuouslya)Rebalanced.b)Recycledc)Reinvestedd)Monitored.e)Manipulated.
(a)16Which of the following statements isfalse?
(a)17____________ gains are taxable and occur when an asset is sold for more than itsbasis (the value of the asset when it was purchased by the original owner, orinherited by the heirs of the original owner).Which of the following statements is true?
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c)After adjusting for taxes, long-term bonds consistently outperform stocks.d)An asset allocation decision for a taxable portfolio that does not include asubstantial commitment to common stocks may make it difficult for theportfolio to maintain real value over time.e)None of the above(d)19Important reasons forconstructing a policy statementinclude:a)Helps investors decide on realistic investment goalsb)Create a standard by which to judge the performance of the portfolio managerc)Develop an instrument to judge riskd)Choices a and be)All of the above
(a)20In an investment policy statement theobjectives of an investorare expressed interms of
(e)21Research has shown that the asset allocation decision explains% of the variationin fund returns across all funds, and% of the variation in returns for a particularfund over
MULTIPLE CHOICE PROBLEMS(a) 1What is the marginal tax rate for a single individual if his/her taxable income is$30,000, $70,000, or $125,000?
(c)2What is the tax bill for a couple, filing jointly, if their taxable income is $50,000?What isthe couple’s average tax rate for this level of income?a)$8,644,28.00%b)$6,180,17.29%c)$8,124,16.25%
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d)$2,464,17.29%e)$8,644,15.00%(d) 3What would the equivalent taxable yield be on an investment that offers a 6percent tax exempt yield?Assume a marginal tax rate of 28%.
(c) 4

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