The ________ Is a Weighted Average of the Cost of Funds

question 66

Multiple Choice

The ________ is a weighted average of the cost of funds which reflects the interrelationship of financing decisions.

• A) risk premium
• B) nominal cost
• C) cost of capital
• D) risk-free rate

---

Definitions:

Relative Strength

A momentum investing technique that compares the performance of a stock or security to the market or its peers.

Support Level

Support Level is a price level at which a security tends to stop falling because there is more demand than supply, potentially preventing the price from declining further.

10-day Minimum Price

The lowest trading price of a security over a 10-day period, often used by traders to make buying or selling decisions.

Limit To Arbitrage

This refers to constraints that prevent traders from correcting mispricing in financial markets, often caused by factors like regulations, trading costs, or risk.