The Appropriate Opportunity Cost of Capital Is the Return That

question 33

Multiple Choice

The appropriate opportunity cost of capital is the return that investors give up on alternative investments that:

• A) possess the same level of risk.
• B) earn the risk-free rate of return.
• C) are included in the S&P 500 index.
• D) earn the average market rate of return.

---

Definitions:

U.S. Dollar

The U.S. Dollar is the official currency of the United States and is widely used around the world as a standard for financial transactions.

Hong Kong Dollars

The official currency of Hong Kong, abbreviated as HKD.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets.

Exchange Rate

The value of one currency for the purpose of conversion to another, dictating how much one country's currency is worth in terms of another's.