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:

    “Open the doors of opportunity to talent and virtue and they will do themselves justice, and property will not be in bad hands.”
    —Ralph Waldo Emerson (1803–1882)

    “Apparently, a democracy is a place where numerous elections are held at great cost without issues and with interchangeable candidates.”
    —Gore Vidal (b. 1925)

    “If Los Angeles has been called “the capital of crackpots” and “the metropolis of isms,” the native Angeleno can not fairly attribute all of the city’s idiosyncrasies to the newcomer—at least not so long as he consults the crystal ball for guidance in his business dealings and his wife goes shopping downtown in beach pajamas.”
    —For the State of California, U.S. public relief program (1935-1943)