Definition of "Opportunity cost"

Edward "Ed" Rowles real estate agent
Edward "Ed" Rowles, Real Estate Agent Coldwell Banker Preferred Wilmington

Value of a foregone opportunity, one rejected in favor of a presumably better opportunity. For example, investment of a sum into a mutual fund instead of a variable annuity with a comparable equities portfolio, thereby foregoing the tax deferred advantages of the investment build-up under the variable annuity.

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