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Opportunity cost
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Opportunity costThe amount that a factor of production could have earned if put to another use.
RELATED TERMS--------------------------------------
Factor
A financial institution that buys a firm's accounts receivable and collects the accounts.
Production
In the context of project financing, a defined portion of the proceeds of production up to a dollar amount.
SIMILAR TERMS--------------------------------------
Opportunity cost of capital
Expected return that is forgone by investing in a project rather than in comparable financial securities.
Opportunity line
Slope of a graph representing portfolios achieved by combining different levels of borrowing and lending with a single risky portfolio.
Opportunity set
The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.
PREVIOUS AND NEXT TERMS--------------------------------------
Operating risk
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.
Operationally efficient market
Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an efficient market.
Opinion shopping
Attempts by a corporation to attain reporting objectives by following questionable accounting principles, with the help of an auditor willing to sanction the practices. Prohibited by the SEC.
OPM
Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.
Oporto
Portugal's derivatives exchange (Bolsa de Derivados do Oporto) trading futures on the ten-year government bond, Portuguese stock index, and three-month interbank deposit rate LISBOR (Lisbon Interbank Offered Rate).
Opportunity cost
Opportunity cost of capital
Expected return that is forgone by investing in a project rather than in comparable financial securities.
Opportunity line
Slope of a graph representing portfolios achieved by combining different levels of borrowing and lending with a single risky portfolio.
Opportunity set
The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.
Optimal contract
The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost.
Optimal portfolio
An efficient portfolio most preferred by an investor because its risk-reward characteristics approximate the investor's utility function. A portfolio that maximizes an investor's preferences with respect to return and risk.
RELATED TERMS--------------------------------------
Factor
A financial institution that buys a firm's accounts receivable and collects the accounts.
Production
In the context of project financing, a defined portion of the proceeds of production up to a dollar amount.
SIMILAR TERMS--------------------------------------
Opportunity cost of capital
Expected return that is forgone by investing in a project rather than in comparable financial securities.
Opportunity line
Slope of a graph representing portfolios achieved by combining different levels of borrowing and lending with a single risky portfolio.
Opportunity set
The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.
PREVIOUS AND NEXT TERMS--------------------------------------
Operating risk
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.
Operationally efficient market
Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an efficient market.
Opinion shopping
Attempts by a corporation to attain reporting objectives by following questionable accounting principles, with the help of an auditor willing to sanction the practices. Prohibited by the SEC.
OPM
Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.
Oporto
Portugal's derivatives exchange (Bolsa de Derivados do Oporto) trading futures on the ten-year government bond, Portuguese stock index, and three-month interbank deposit rate LISBOR (Lisbon Interbank Offered Rate).
Opportunity cost
Opportunity cost of capital
Expected return that is forgone by investing in a project rather than in comparable financial securities.
Opportunity line
Slope of a graph representing portfolios achieved by combining different levels of borrowing and lending with a single risky portfolio.
Opportunity set
The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.
Optimal contract
The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost.
Optimal portfolio
An efficient portfolio most preferred by an investor because its risk-reward characteristics approximate the investor's utility function. A portfolio that maximizes an investor's preferences with respect to return and risk.
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This dictionary contains 24549 terms.
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