What,typically,is used to calculate the opportunity cost of capital on a risk-free investment?
A)the best available expected return offered in any investment available in the market
B)the interest rate on U.S.Treasury securities with the same term
C)the interest rate of any investments alternatives that are available
D)the best rate of return offered by U.S.Treasury securities

Question

Quizplus · Accepted Answer

The interest rate on U.S. Treasury securities with the same term is typically used to calculate the opportunity cost of capital on a risk-free investment. This is because U.S. Treasury securities are considered to be a risk-free investment and their interest rate reflects the cost of borrowing money from a risk-free source.

What,typically,is Used to Calculate the Opportunity Cost of Capital on a Risk-Free