Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,292 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case? ... O A. 9% О В. 10% O C. 8% O D. 7%

Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,292 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case? ... O A. 9% О В. 10% O C. 8% O D. 7%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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