An investor holds the same investment in three different accounts. Which of the following accounts will have the lowest risk?
A) A TDA. B) A tax-exempt account. C) A taxable account.
C. Taxable
C
yes answer is C
Why because here the part of the investment volatility would be borne by the govt.?
post tax volatility = Std dev (1 - t)
that is a mighty fine question