When calculating the expected utility, we should use the pre-tax expected return or after-tax expected return?
In a question from Kaplan, they use the pre-tax expected return without considering the tax rate.
Why? Is it a norm to do so?
When calculating the expected utility, we should use the pre-tax expected return or after-tax expected return?
In a question from Kaplan, they use the pre-tax expected return without considering the tax rate.
Why? Is it a norm to do so?