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Step 7 Review Questions

1. The only uncontrollable partner in investing is:
a. income tax.
b. inflation.
c. commissions.
d. margin account interest.
2. What is the difference between "realized" and "unrealized" gains?
a. taxable vs non-taxable
b. old money vs new money
c. fund based vs. investor based
d. none of the above
3. What are the advantages of low portfolio turnover?
a. lower taxes
b. fewer trading costs
c. maximum capital gain
d. all of the above