Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements about opportunity costs is false? The opportunity cost rate to be applied to any investment is the rate of return
Which of the following statements about opportunity costs is false?
The opportunity cost rate to be applied to any investment is the rate of return that could be earned on alternative investments of similar risk. |
In general, higher-risk investments should have higher opportunity costs than lower-risk investments. |
Opportunity cost rates are normally obtained by examining the returns on securities investments. |
The opportunity cost rate typically is applied in discounting situations (as opposed to compounding). |
Say you just inherited $10,000. Because this money cost you nothing, it has an opportunity cost rate of zero. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started