SIE Exam Practice Question 909

Question: 909

John owns an investment yielding an after-tax return of 9.5%. If he is in the 15% tax bracket, what is the equivalent pre-tax return?

Correct Answer: D

Explanation:

Pre-tax return = 0.095 รท (1 - 0.15) = 0.1118 = 11.18%

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