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We must estimate required rates of return on real assets from market data on financial assets, which can be simple to do. (CSLO 5) True
We must estimate required rates of return on real assets from market data on financial assets, which can be simple to do. (CSLO 5)
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For real assets, no market data on rates of return exist. As a result, we must look at investors' opportunity cost, the rate of return they give up when they invest in real assets rather than financial assets. (CSLO 5)
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