What is the opportunity cost of an investment? a. the combined values of the other opportunities available b. the value of the next most valuable opportunity c. the marginal benefit of the investment d. the volatility of the investment please select the best answer from the choices provided a b c d

Respuesta :

Opportunity cost is the loss of the profit when an alternative resulting in loss is chosen. The opportunity cost of the investment is the value of the most valuable opportunity. Thus, option B is correct.

What is an opportunity cost?

Opportunity cost includes the let go of one opportunity when the other alternative is chosen. The loss of the most beneficial option is called the opportunity cost.

It is also called alternative forgone as the choice of an alternative includes the loss of the profits that could have been possible when the other option was chosen.

Therefore, option B. opportunity cost of the investment is the value of the next opportunity.

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