Published by
Benzinga
Imagine you’re in a candy shop, and you have just enough money for one sweet treat. The problem? You’re torn between a chocolate bar and a bag of gummy bears. That’s when the principle of opportunity cost comes into play — if you choose the chocolate bar, you’re giving up the gummy bears, and vice versa. Now, let’s translate this to your financial life. Every investment decision you make comes with its own opportunity cost. By choosing one investment over another, you give up the potential returns of the one you passed over. So, how do you make savvy choices? That’s where understanding risk/re…
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