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Tresset [83]
3 years ago
13

The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your e

xam. If you had studied the night before, you'd have scored 70 percent. What was the opportunity cost of your evening at the movies?
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer:

10% of exam score

Explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised)  while making a choice.

Example : If a person has option to have an apple or an orange, & choses to have apple. The opportunity cost of having an apple is the sacrifised orange.

Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.

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4 years ago
A stock has an expected return of 16.1 percent, the risk-free rate is 6.45 percent, and the market risk premium is 7.2 percent.
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