Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A) The 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 U.S. Treasury securities with a similar term.

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Definitions:

Reality Principle

The psychological concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Erogenous Zones

Areas of the body especially sensitive to sexual stimulation.

Psychosexual Stages

A theory proposed by Freud that child development occurs in five stages (oral, anal, phallic, latency, genital) each associated with pleasure in different parts of the body.

Projective Tests

Psychological assessments that involve presenting individuals with ambiguous stimuli and interpreting their responses based on the projection of their subconscious thoughts and feelings.