I. Summary and conclusions, 388. - Loss offset provisions, 391. -
II. The rationale of investment behavior: yield and risk defined, 393; yield
and risk of an asset combination, 398; investor's indifference map and invest-
ment equilibrium, 402. - III. Taxation without loss offset: effects of the tax
on yield and risk, tax sensitiveness, 403; adjustment of asset combination held,
405. popular versions of the argument, 408.- IV. Taxation with full loss
offset: effects on yield and risk, 409; total risk and private risk distinguished,
410; adjustment of asset combination held, 411; total risk increased as result
of tax, 412. - V. The general case, taxation with variable loss offset: effects
of varying tax rate and varying loss offset, 415; adjustment of asset combina-
tion to changes in tax rate, with given loss offset, 418; adjustment to changes
in loss offset, with given tax rate, 419. - VI. Qualifications, 421.