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mojhsa [17]
3 years ago
15

Describe an investment decision you or your company has made. Compute the opportunity costs and benefits of the decision. Did yo

ur company make the right decision
Business
1 answer:
ArbitrLikvidat [17]3 years ago
4 0

Answer:

See below

Explanation:

The investment decision I made was to put my money in money market - Mutual funds. Although the rate varies, yet I decided to investment in it due to the security attached to this kind of investment and the guaranteed returns.

The opportunity cost is that I gave up investing my funds in a fixed deposit instead, opt for investing in mutual funds. Here, the opportunity cost is the fixed deposit investment and the returns therein. The benefit of mutual fund investment is that I would be entitled to a quarterly interest(earned) as specified in my initial application.

I did make the right decision in that at least I am entitled to a quarterly interest even though I would also get interest if the fund was invested in fixed deposit but the interest due to me in my mutual funds investment is a little higher than the fixed deposit.

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