Why,in General,do Investment Opportunities Offer a Rate Greater Than That

Multiple Choice

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

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