Which of the Following Is an Example of Opportunity Cost

question 192

Multiple Choice

Which of the following is an example of opportunity cost not measured by money cost?

• A)the time spent eating a business lunch at a restaurant 
• B)the time spent preparing a meal eaten at home 
• C)the time spent studying to obtain an "A" in economics 
• D)the time spent repairing a car in one's own garage 
• E)All of the above are correct.

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Definitions:

Capital Asset Pricing Model

An approach outlining the connection between inherent risks and the expected return of assets, with a focus on stocks.

SML

The Security Market Line, a graphical representation used in the capital asset pricing model (CAPM) to show the relationship between the risk of an investment and its expected return.

Expected Return

The anticipated gain or loss on an investment, considering both the risk and return.

Expected Return

Expected return is the anticipated profit or loss from an investment, based on the potential outcomes and their probabilities, often used to evaluate investment choices.