Discussion: Risk, Return and Opportunity Cost of Capital
1) Describe the meaning of diversification. How does diversification reduce risk for the investor?
2) What is the opportunity cost of capital? How can a company measure opportunity cost of capital for a project that is considered to have average risk?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.