Why, in General, Do Investment Opportunities Offer a Rate Greater

question 5

Multiple Choice

Why, in general, do investment opportunities offer a rate greater than that offered by Australian government securities for the same horizon?

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

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