Capital asset pricing theory would most likely suggest that the cost of capital is generally ____ for ____.
A) higher; MNCs
B) lower; domestic firms
C) lower; MNCs
D) None of these are correct.

Question

Quizplus · Accepted Answer

Capital asset pricing theory suggests that the cost of capital is generally lower for Multinational Corporations (MNCs) because they have more opportunities to diversify their investments and risks globally, reducing their overall risk.

Capital Asset Pricing Theory Would Most Likely Suggest That the Cost