NO.PZ2024101802000017
问题如下：
Discuss how the benefits of tax deferral can be overcome by finding mispriced investment opportunitie
选项：
解释：
The benefits of tax deferral can be overwhelmed if investments taxed on an accrual basis offer sufficiently high risk-adjusted returns. That is, purchasing securities sufficiently below their intrinsic value (or short selling securities sufficiently above intrinsic value) can overcome tax drag even if the investment is taxed heavily on an annual basis.
The benefit of tax deferral can reduce the tax cost by deferring the tax payment date.But sometimes the benefit of tax deferral can be overstated if othter investments taxed on an accrual basis offer sufficiently high risk-adjusted returns.Buying low and selling high can overcome tax drag even if the investment is heavily taxed.
