Why, in general, do investment opportunities offer a rate greater than that offered by Australian government securities for the same horizon?
A) Australian government securities are generally considered to be the best alternative to most investments.
B) The opportunity cost of capital for a given horizon is generally based on Australian government securities with that same horizon.
C) The return from Australian government securities generally attracts less tax than the returns from other investments.
D) Most investment opportunities offer far greater risk than those offered by Australian government securities.
Correct Answer:
Verified
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