n NISM Certifications
X NISM Series X
Medium

What is the post-tax return if the gross return on an investment is 14% and the applicable tax rate is 18%?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    13.20%

  2. B

    12.85%

  3. C

    14%

  4. 11.48%

    Correct answer

Why this is the answer

Post-tax return = 14% × (1 – 0.18) = 11.48%.

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