Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) The investor's opportunity cost of capital is the best available expected return offered in the market on an investment of comparable risk and term of the cash flows being discounted.
• B) Interest rates we observe in the market will vary based on quoting conventions, the term of investment, and risk.
• C) The opportunity cost of capital is the return the investor forgoes when the investor takes on a new investment.
• D) For a risk-free project, the opportunity cost of capital will typically be greater than the interest rate of Canadian T-bill securities with a similar term.

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Definitions:

Sales Quota

A specific sales performance target set for a salesperson or team to achieve within a given timeframe.

Geographical Area

A specific physical region or territory within which activities associated with sales or marketing are conducted.

80/20 Principle

A rule of thumb that states that 80% of outcomes result from 20% of all causes for any given event.

Time Management

The process of organizing and planning how to divide one's time between specific activities efficiently.