Opportunity Cost of Capital

The opportunity cost of capital is the expected rate of return forgone by bypassing of other potential investment activities for a given capital. It is a rate of return that investors could earn in financial markets.

Famous quotes containing the words opportunity, cost and/or capital:

    “The problem ... is emblematic of what hasn’t changed during the equal opportunity revolution of the last 20 years. Doors opened; opportunities evolved. Law, institutions, corporations moved forward. But many minds did not.”
    —Anna Quindlen (b. 1952)

    “I acknowledge that the balance I have achieved between work and family roles comes at a cost, and every day I must weigh whether I live with that cost happily or guiltily, or whether some other lifestyle entails trade-offs I might accept more readily. It is always my choice: to change what I cannot tolerate, or tolerate what I cannot—or will not—change.”
    —Melinda M. Marshall (20th century)

    “The great dialectic in our time is not, as anciently and by some still supposed, between capital and labor; it is between economic enterprise and the state.”
    —John Kenneth Galbraith (b. 1908)