Q1. With regard to wealthy investors, which of the following statements is most correct? A) Taxable bonds are usually tax-inefficient, hedge funds are often tax-efficient, and private equity is typically tax-efficient. B) Taxable bonds are usually tax-inefficient, hedge funds are often tax-inefficient, and private equity is typically tax-efficient. C) Taxable bonds are usually tax-inefficient, hedge funds are often tax-inefficient, and private equity is typically tax-inefficient.
Q2. Regarding hedge funds, they are often: A) tax inefficient because to be successful their strategies rely on frequent trading. B) tax efficient because to be successful their strategies rely on frequent trading. C) tax efficient because to be successful their strategies rely on infrequent trading.
Q3. Investments in private equity and venture capital are usually: A) tax efficient because any gains realized are ordinarily taxed at favorable short-term rates. B) tax efficient because any gains realized are ordinarily taxed at favorable long-term rates. C) tax inefficient because any gains realized are ordinarily taxed at unfavorable short-term rates.
Q4. Investments in hard assets, such as timber, minerals, and oil typically have: A) favorable tax characteristics because they are taxed at long-terms gains rates. B) unfavorable tax characteristics because they are taxed at short-term gains rates. C) favorable tax characteristics because of special features in the tax code.
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发表于 2009-1-20 09:13
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