What is opportunity cost in investing: 4 things to know

If there is an alternate use to which money can be put, a decision to ignore it and do what one set out to do, creates an opportunity cost. If I leave money idle in the bank because I worry that the equity markets will crash, I make a choice. The opportunity cost of this choice is the difference between the market return of, say, 8%, and the 3% that my money earns.
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