Question: Question 8 (1 point) Suppose your client lives in Texas. She is comparing a 3-month Treasury Bill yielding 6% with a State of Massachusetts 3-month

Question 8 (1 point) Suppose your client lives in Texas. She

Question 8 (1 point) Suppose your client lives in Texas. She is comparing a 3-month Treasury Bill yielding 6% with a State of Massachusetts 3-month municipal yielding 4.4%. Her federal tax rate is 25%. The Texas state income tax rate is 0% and the Massachusetts state income tax rate is 5%. Depending on the client's risk aversion, one or the other might be better The Treasury Bill is the better investment for your client The Massachusetts municipal is the better investment for your client

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