Which of the Following Is Defined as the Rate of Return

question 53

Multiple Choice

Which of the following is defined as the rate of return on the best available alternative investment of equal risk?

• A) Amortization rate
• B) Risk adjusted rate
• C) Required rate of return
• D) Opportunity cost rate
• E) Expected rate of return

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to use without reducing availability to others, such as public parks or national defense.

Common Resources

Resources that are non-excludable but rivalrous, meaning they are available to everyone, but one person's use diminishes another's ability to use it.

Nonrival in Consumption

A characteristic of some goods where one person's consumption does not reduce the availability of the good for consumption by others.

Nonexcludable

A characteristic of a good or service where it is not possible to prevent people who have not paid for it from having access to it.