he whole notion of a cost of capital is ultimately based around an investor's opportunity cost. Investors can move so freely between stocks and other asset classes now. Gold has a compounded return rate of 13.1% over the last 10 years, compared to the S&P 500's compounded annual growth rate of 2.1%.

 Assuming that we all agreed on the above, which of the following sounds reasonable?

a. Investors would be content with 2.1% of return on their investment in funding companies

b. Gold market is likely to have a higher market premium than stock market does

c. The higher investor's opportunity cost is, the lower companies' WACC

d. Investment in gold looks safer and more lucrative than in stocks