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An investor has two investment options: ( i ) an equity fund with an expected return of 9 % that is taxed at a capital
An investor has two investment options: i an equity fund with an expected return of that is taxed at a capital gain tax rate of and is marked to market every year, and ii a nondividend paying stock with an expected return of What is the ratio of terminal wealth
in these two cases after years of investment?
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