What, Typically, Is Used to Calculate the Opportunity Cost of Capital

question 43

Multiple Choice

What, typically, is used to calculate the opportunity cost of capital on a risk-free investment?

• A) the best expected return offered in any investment available in the market
• B) the interest rate on U.S. Treasury securities with the same term
• C) the interest rate of any investments alternatives that are available
• D) the best rate of return offered by U.S. Treasury securities

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Definitions:

Relationship-Oriented

A business or marketing approach that prioritizes building long-term relationships with customers over immediate sales or transactions.

Salesperson

An individual who sells goods and services to others in exchange for money or other compensation.

Chamber of Commerce

A local or national organization of business owners and professionals aiming to promote and protect the interests of its members.

Census Data

Demographic information collected by a government systematically enumerating its population at a specific point in time, often used for research, planning, and policy making.