Quote:
Originally Posted by THISmaqe
By the way, risk is quantifiable. There's no way to quantify the "harm" of passing on Sanchez because we'll never see him play as a Chief.
|
Htis, I think what the other folks are trying to describe is
opportunity cost.
If you don't take Sanchez, you're missing out on the oppotunity to gain the benefit of his employment with the Chiefs. I'm pretty sure that's what the other guys are after.
There is an arguement of risk with opportunity costs. If we don't take him, then we risk losing his potential production. It's all a matter of what if's but it's just like anything in the financial world. If you think there is a certain percentage chance you can make a yield a quantified amount, that becomes your opportunity cost. I believe the same can be said about football players. By not taking him, you risk losing his potential production, whatever you have projected that to be.