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 Government of Canada securities with the same term
C)the interest rate of any investments alternatives that are available
D)the best rate of return offered by Government of Canada securities
E)the interest rate on short-term Government of Canada securities

Question

Quizplus · Accepted Answer

The interest rate on Government of Canada securities with the same term is typically used to calculate the opportunity cost of capital on a risk-free investment. This is because these securities are considered to have no credit risk, as they are backed by the Canadian government, and are therefore often used as a benchmark for risk-free returns.

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