Andrew Invested $200,000 in the Shares of a Company

question 22

Multiple Choice

Andrew invested $200,000 in the shares of a company.At the end of a year,he had earned $7,000 as dividends on his shares along with a $1,000 appreciation in the overall value of his shares.However,if Andrew had invested the same amount on an asset,like gold,the appreciation in its value would have earned him $10,000 at the end of the year.In this scenario,which of the following is Andrew's opportunity cost?

• A) $7,000
• B) $10,000
• C) $2,000
• D) $200,000

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