The Opportunity Cost of Capital for a Safe Investment Is

question 26

Multiple Choice

The opportunity cost of capital for a safe investment is:

• A)The rate of return on U.S.Treasury notes.
• B)The expected rate of return on the stock market.
• C)The interest rate that the firm pays on a loan from a bank or insurance company.
• D)The interest rate that the firm receives on its checking account.

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Definitions:

Erikson's Second Psychosocial Stage

Autonomy versus shame and doubt, a stage that occurs from about 18 months to 3 years of age, where children learn to develop a sense of personal control and independence.

Unusual Event

An occurrence that is out of the ordinary and generally unexpected.

Thomas and Chess

Psychologists known for their research on temperament, categorizing individual behavioral responses into different types.

Emotion Regulation

The method through which people affect their feelings, including the way they feel and convey them.