Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A) The 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.

---

Definitions:

Attachment

An emotional bond between individuals, particularly between a child and caregiver, which is critical for the child's development and psychological security.

Easy Temperament

Refers to a personality disposition noticeable from infancy, characterized by regular biological rhythms, adaptability, and a predominantly positive mood.

Authoritative Parenting

A parenting style characterized by high expectations of maturity and self-regulation, as well as high responsiveness, warmth, and support.

Secure Attachment

A healthy emotional bond formed in early childhood, characterized by trust and a sense of safety in the relationship with the caregiver.