The Rate of Return on the Best Available Alternative Investment

question 9

True/False

The rate of return on the best available alternative investment of equal risk is the risk-adjusted required rate of return. 

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Definitions:

Civil Service System

A merit-based selection system for government employees excluding military and political appointments, aimed at ensuring competence and impartiality.

Politics

The activities associated with governance, or the debate and conflict among individuals or parties having or hoping to achieve power.

Pendleton Act

A federal law enacted in 1883 that established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its voters as a reward for working toward victory.