An Estimation of the Opportunity Cost of Capital for Projects

question 79

Multiple Choice

An estimation of the opportunity cost of capital for projects that have an "average" level of risk is the rate of return on:

• A) Treasury bills.
• B) the market portfolio.
• C) the market portfolio minus the rate of return on Treasury bills.
• D)Treasury bonds plus a maturity premium.

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Definitions:

Consecutive Hours

A sequence of hours that follow one another without interruption, often used to measure the duration of activities or operations from start to finish.

Naturalistic Observation

Naturalistic observation is a research method where subjects are observed in their natural environment without any manipulation by the observer.

Violent Video Games

Digital games that focus on engaging the player in acts of simulated violence.

Aggressive Behavior

Actions or conduct that are intended to harm or intimidate others, which can be physically violent or verbally aggressive.