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NEW QUESTION: 1
The line of best fit for a scatter diagram showing the rates of return of an individual risky asset and the market portfolio of risky assets over time is called the ______.
A. security characteristic line.
B. security market line.
C. capital asset pricing model.
Answer: A
Explanation:
The security characteristic line is the line of best fit for a scatter diagram showing the excess rates of return of an individual risky asset and the excess return of market portfolio of risky assets over time.
NEW QUESTION: 2
Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores'
1994 Form 1040.
Tom's 1994 wages were $53,000. In addition, Tom's employer provided group-term life insurance on Tom's life in excess of $50,000. The value of such excess coverage was $2,000.
A. $75,000
B. $900
C. $50,000
D. $25,000
E. $55,000
F. $1,000
G. $10,000
H. $1,500
I. $500
J. $1,300
K. $2,000
L. $3,000
M. $0
N. $1,250
O. $2,500
Answer: M
Explanation:
Explanation
"N" is correct. $55,000. The value of employer-provided group term life insurance for which the face amount exceeds $50,000 is taxable income to the insured employee and the $53,000 in wages would both be included on page one, Form 1040.
NEW QUESTION: 3
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Answer: C
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