Answer:
Standard deviation of the company's common stock.
Explanation:
The cost of capital is a term used to describe the opportunity cost of making an investment decision. It can also be used to describe the rate of return which is could have been achieved from the another investment of the same risk level when compared to the investment decision that was taken.
THE STANDARD DEVIATION OF A COMPANY'S COMMON STOCK WILL HAVE THE LOWEST EFFECTS ON ITS COST OF CAPITAL WHEN COMPARED TO OTHER OPTIONS.
