Why,in General,do Investment Opportunities Offer a Rate Greater Than That

question 26

Multiple Choice

Why,in general,do investment opportunities offer a rate greater than that offered by U.S.Treasury securities for the same horizon?

• A)Most investment opportunities offer far greater risk than those offered by U.S.Treasury securities.
• B)The return from U.S.Treasury securities generally attracts less tax than the returns from other investments.
• C)The opportunity cost of capital for a given horizon is generally based on U.S.Treasury securities with that same horizon.
• D)U.S.Treasury securities are generally considered to be the best alternative to most investments.

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, containing the genetic information necessary for the development of a new organism.

Chromosomes

Structures located in the nucleus of cells, made up of DNA and protein, that contain genes, the basic units of heredity.

Pairs

Groupings of two related or associated items, often used to study comparisons or contrasts.

Sperm Cells

Male reproductive cells, which contribute half of the genetic material necessary for fertilization of an ovum.