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Is opportunity cost the rate of return available to an investor for a given level of risk?
Wiki User
∙ 15y ago
No!
Opportunity cost is the cost (sacrifice) forgone (or lost) as a consequence of choosing one option over an alternative that may be equally desired. Thus, opportunity cost is the cost of making one choice rather than another. Every action has an opportunity cost! And it is not restricted to only monetary or financial matters: when a person chooses one leisure activity (option 'A') rather than another that was equally desirable (option 'B'), they 'lose' the pleasure etc that would have been enjoyed had they chosen option 'B'. This 'loss' would be the 'opportunity cost' of making choice 'A'. The exercise of choice invariable restricts the chooser from making certain other choices. There are many mutually exclusive choices in life. A person who chooses to marry does so at the 'cost' of the advantages and freeness of singleness. In economics, 'opportunity cost' is a very important concept, because it forces the decision maker to evaluate, not only the benefits of pursuing a certain course, (e.g. course 'A'), but also to evaluate the direct loss of other opportunities that could be taken if course 'A' is not taken. For example, an investor may decide to put all his money into financing a particular project. But, by using the 'opportunity cost' concept, he also is well aware that he does so at the 'opportunity cost' i.e. the cost of lost opportunity, the opportunity to get, perhaps bigger or more secure returns elsewhere.
Wiki User
∙ 15y ago
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What do economists the next best alternative that had to be given up for the one chosen?
opportunity cost
What must be given up to obtain an item called?
Opportunity cost
Success depends on opportunity and not on character?
Success depends on opportunity. But both of these opportunity and character are the main factors to which one's success is depended on. If one's character is good, there is its no use of being success if one is not given an opportunity. So, success depends more on opportunity than on character.
What do economits call the next best alternative that to be given up for the one chosen?
opportunity cost
The potential benefit that is given up when one alternative is selected over another is called?
an opportunity cost
What is the name for a treasury certificate given by the government to an investor in exchange for money?
A bond
The implication of different source of finance?
The implication of different source of finance is that a given investor has a wide pool to choose from. The implication is an investor can start very many projects.
As people are given the opportunity to govern themselves they become more?
I need the answer to this
What is the bad thing about getting reincarnated?
There is no bad thing in getting reincarnated but rather a good thing. Reincarnation is believed to be an opportunity given to those who want to correct the negatives of their past earthly lives. So in this case life is pictured as a school and for those who have failed there is an opportunity to return.
What do economists the next best alternative that had to be given up for the one chosen?
opportunity cost
Will goats eat fruit?
Yes given the opportunity they will.
Do mallards eat fish?
Given the opportunity, yes.
Why are share prices important?
Because an investor can buy or sell a stock at any time for a given price.
What is a example of investment?
Investments consist of the transfer of one form of exchange for another in hopes that the received form appreciates in value faster than that which is given up. For example, one might give currency in exchange for real property, which the investor hopes would appreciate over time faster than value of the currency. Since there is uncertainty over the rate at which each method of exchange will gain value the investments involve risk. Successful investors work to derive the greatest opportunity for return while reducing the risks associated with that return.
Can you show me a business letter proposal?
A business letter of proposal is usually written to a given investor with suggestions on a given type of business. The advantages of the given business is usually included in the proposal.
What is shopping opportunity?
Shopping Opportunity in the Direct Sales Business, is when you are given the chance to shop for up to 50% off from the product line after learning about the business opportunity.
Would a mouse eat a caterpiller?
Yes, given the opportunity.
