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Angela has her money in government bonds that yield 2%. She is considering selling the bonds and buying shares of stock with a current dividend
Angela has her money in government bonds that yield 2%. She is considering selling the bonds and buying shares of stock with a current dividend yield of 3%.
What is her opportunity cost?
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The 2% yield of the government bonds.
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The amount the stock value might decrease.
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The difference between the bond yield and the stock dividend.
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I DON'T KNOW YET
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