In a Miller equilibrium, what type of investments do high tax bracket investors tend to hold?
A)Bonds
B)Stocks
C)Debentures
D)Both shares and bonds.
E)Neither shares nor bonds.

Question

Quizplus · Accepted Answer

High tax bracket investors tend to hold stocks in a Miller equilibrium because stocks typically offer capital gains, which are taxed at a lower rate than interest income from bonds.

In a Miller Equilibrium, What Type of Investments Do High