What,typically,is Used to Calculate the Opportunity Cost of Capital on a Risk-Free

question 93

Multiple Choice

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

• A)the best available expected return offered in any investment available in the market
• B)the interest rate on Government of Canada securities with the same term
• C)the interest rate of any investments alternatives that are available
• D)the best rate of return offered by Government of Canada securities
• E)the interest rate on short-term Government of Canada securities

---

Definitions:

Account Type

A classification that defines the nature and features of a financial account, such as checking, savings, or investment accounts.

Practitioner

A professional engaged in the practice of a particular occupation or profession, often in healthcare.

Open-Book Account

An account that is open to charges made occasionally as needed.

Charges

Fees or payments required for services, or the formal accusations of wrongdoing.