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    Fundamentals of Corporate Finance Study Set 24
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    Exam 11: Introduction to Risk, Return, and the Opportunity Cost of Capital
  5. Question
    An Estimation of the Opportunity Cost of Capital for Projects
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An Estimation of the Opportunity Cost of Capital for Projects

Question 2

Question 2

Multiple Choice

An estimation of the opportunity cost of capital for projects that have an "average" level of risk is the rate of return on:


A) treasury bills.
B) the market portfolio.
C) the market portfolio minus the rate of return on treasury bills.
D) treasury bonds plus a maturity premium.

Correct Answer:

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