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You believe that you can earn 1% more on your portfolio if you engage in full-time stock research. However, the additional trading costs and tax

You believe that you can earn 1% more on your portfolio if you engage in full-time stock research. However, the additional trading costs and tax liability from active management will cost you about .25%. You have a $1,000,000 stock portfolio. What is the most you can afford to spend on your research?
  • A. $2,500
  • B. $7,500
  • C. $10,000
  • D. $12,500

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