In the real world, does the cost of capital differ among countries?

Question

Quizplus · Accepted Answer

The cost of capital differs among countries due to various factors such as differences in inflation rates, economic stability, political environment, and other market conditions. This is because the cost of capital reflects the risk associated with investing in a particular country. Therefore, investors demand a higher return on investment to compensate for the perceived risk, resulting in a higher cost of capital. Hence, option A is the correct answer.

In the Real World, Does the Cost of Capital Differ