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

Multiple Choice

Why, in general, do investment opportunities offer a rate greater than that offered by U.S. Treasury securities for the same horizon?

A) Most investment opportunities bear far greater risk than those offered by U.S. Treasury securities.
B) The return from U.S. Treasury 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 U.S. Treasury securities with that same horizon.
D) U.S. Treasury securities are generally considered to be the best alternative to most investments.