At the time Sherry signed her joint return, she knew that her spouse did not report $5,000 of gambling winnings. The IRS examined the tax return several months after she filed it and determined that her spouse's unreported gambling winnings were actually $25,000. Sherry established that she did not know about, and had no reason to know about, the additional $20,000 because of the way her spouse handled gambling winnings. If Sherry meets the other requirements, what amount of the understated income will qualify for innocent spouse relief

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d