tarik64

A general tip: when in doubt, check what the numbers say/imply.
A brief look at the table gives out plenty clues that the (after-tax) return has already included yield.
- Port A only has bonds – total return = yield
- Total return of port A consistent with given total return (first column) of its components.
- After tax return of 4.2% reasonable number of a high quality bond portfolio. If yield NOT included in this number – after tax return = 4.2+4.2= 8.2% way too high an after-tax return for a AA/US T bond portfolio.