What,typically,is Used to Calculate the Opportunity Cost of Capital on a Risk-Free

question 93

Multiple Choice

What,typically,is used to calculate the opportunity cost of capital on a risk-free investment?

• A)the best available expected return offered in any investment available in the market
• B)the interest rate on Government of Canada securities with the same term
• C)the interest rate of any investments alternatives that are available
• D)the best rate of return offered by Government of Canada securities
• E)the interest rate on short-term Government of Canada securities

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Definitions:

Phase Voltage

The voltage measured across a single component in a polyphase system, such as in a three-phase electrical system, representing part of the total system voltage.

Load Leg

A component or part of an electrical circuit that carries current from the source to a load and then back to the source, completing the electrical circuit.

Delta-Delta Transformer

A type of three-phase transformer connection where both the primary and secondary windings are connected in a delta configuration.

Turns Ratio

The ratio of the number of turns in the primary winding to the number of turns in the secondary winding of a transformer, determining its voltage transformation characteristics.