id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
ajiss-2128	Iqbal, Zamir	The Benchmark Issue in the Islamic Financial System	1999.0	10	.pdf	application/pdf	3530	139	44	A profit maximizing firm will continue investing until the marginal productivity of capital becomes equal to the opportunity cost of capital; therefore, “cost of capital” in the Islamic system can be represented by the rate of return on altemate opportunities 48 The American Journal of Islamic Social Sciences 16:2 for investment of comparable risk.5 It has also been demonstrated that there is a rate of return in Islamic capital markets serving opportunity cost of cap- ital, and this rate of return is also closely related to the rate of retum in the red sector of the economy.6 In the Islamic financial system, determination of prospective profitabili- ty and the rate of return on investments of the same risk class plays a piv- otal role in determining the relative cost of capital. Current Practice Currently, Islamic financial markets are dominated by short-term trade financing instruments.	cache/ajiss-2128.pdf	txt/ajiss-2128.txt