private wealth q

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


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