In my previous article, I touched on the importance of each investor’s opportunity cost when it comes to the discount rate (link to the article is here). One of the questions I received was how to go about calculating opportunity cost for different investments. This is a great question, and I have yet to come up with a great answer. But I’ll try to share the common approach and the one I use personally.
In my previous article, I touched on the importance of each investor’s opportunity cost when it comes to the discount rate (link to the article is here). One of the questions I received was how to go about calculating opportunity cost for different investments. This is a great question, and I have yet to come up with a great answer. But I’ll try to share the common approach and the one I use personally.
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