Using the Neoclassical model of Investment, mathematical equations and graphs, explain the real cost to rental firms of owning capital.

True (t) or False (f) _____ A reason some companies purchase investments is because they generate a significant portion of their earnings from investment income.

A financial market helps facilitate the flow of capital from where it is to where it is wanted..... needed expensive.... free available..... needed valued.... wasted Oneeded...... available

Which of the following statements is true? Question 3Select one: a. The inflation rate is a measure of how much providers of capital expect the purchasing power of their investment to grow. b. The real cost of capital is a measure of how much providers of capital expect the purchasing power of their investment to grow. c. The real cost of capital is a measure of how much providers of capital expect their wealth, as measured by the number of dollars they have, to grow. d. The nominal cost of capital is a measure of how much providers of capital expect the purchasing power of their investment to grow.

Which of the following statements is true? Group of answer choices The Principle of Diversification states that investors are better off by investing in one asset. The Principle of Diversification states that investors are better off by investing in different types of assets. The Principle of Diversification states that investors are better off by investing in risk-free assets. The Principle of Diversification states that investors are better off by investing in an industry of their choice.