5 ms·
If taxes affect upside for investors (especially in large gain outcomes) then it would definitely reduce rational risk appetite. Say it's rational for some unt
by TTPrograms 5y ago
If taxes affect upside for investors (especially in large gain outcomes) then it would definitely reduce rational risk appetite.
Say it's rational for some untaxed investor to take a chance on 1% on no less than $10M return. If after taxes somewhere that turns into a $5M outcome then you would need a 2% chance for equivalent expected value.