Which of the Following Statements Is FALSE

question 43

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 U.S.Treasury securities with a similar term.

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Definitions:

Categorical Proposition

A statement that asserts or denies something about every member of a category, forming the basis of categorical logic.

Negative

Negative, in a logical or mathematical context, refers to the denial or opposition to a statement, proposition, or a value less than zero in algebra.

Declarative English Sentence

A sentence that makes a statement or expresses an opinion, contrasted with interrogative, imperative, or exclamatory sentences.

Categorical Proposition

A statement that asserts or denies something about all or some of the members of a category.