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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?

  • The 2% yield of the government bonds.

  • The amount the stock value might decrease.

  • The difference between the bond yield and the stock dividend.

  • I DON'T KNOW YET

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