Opportunity Cost Is the Amount of Increase or Decrease in Cost

question 92

True/False

Opportunity cost is the amount of increase or decrease in cost that would result from the best available alternative to the proposed use of cash or its equivalent.

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Definitions:

Capital Gains Yield

The appreciation in the price of an investment, calculated as the increase in the investment's value divided by its initial purchase price.

Total Return

A measure of the performance of an investment, including both capital gains and dividends or interest, over a specific period.

Geometric Return

The average rate of return on an investment that is compounded over multiple periods, reflecting the compound interest effect.

Investment

Channeling money into ventures with the prospect of earning profits or generating income.