n NISM Certifications
X NISM Series X
Medium

If an investment yields 18% pre-tax and tax rate is 12%, what is the post-tax return?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    18%

  2. B

    16.42%

  3. C

    14.77%

  4. 15.84%

    Correct answer

Why this is the answer

18% × (1 - 0.12) = 15.84%.

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