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)

    “It may cost me twenty thousand francs; but for twenty thousand francs, I will have the right to rail against the iniquity of humanity, and to devote to it my eternal hatred.”
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    “Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed.”
    —Mohandas K. Gandhi (1869–1948)