Capital asset pricing theory would most likely suggest that the cost of capital is generally ____ for ____.
A)higher; MNCs
B)lower; domestic firms
C)lower; MNCs
D)none of the above

Question

Quizplus · Accepted Answer

Capital asset pricing theory suggests that the cost of capital is generally lower for Multinational Corporations (MNCs) because they have more opportunities to diversify their investments and risks across different countries, thereby reducing their overall risk.

Capital Asset Pricing Theory Would Most Likely Suggest That the Cost