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You are also running with an assumption that whatever investment they may have used the same funds for, would have netted a gain (or a lower loss). The opportun
by fosk 4y ago
You are also running with an assumption that whatever investment they may have used the same funds for, would have netted a gain (or a lower loss). The opportunity cost argument is only valid if in the alternative investment you actually end up in a better spot, that's not a given.
- ericd 4y agoYeah, especially given that the risk-free rate is currently pretty strongly negative in real terms.