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:

    Sustained unemployment not only denies parents the opportunity to meet the food, clothing, and shelter needs of their children but also denies them the sense of adequacy, belonging, and worth which being able to do so provides. This increases the likelihood of family problems and decreases the chances of many children to be adequately prepared for school.
    James P. Comer (20th century)

    I knew that the wall was the main thing in Quebec, and had cost a great deal of money.... In fact, these are the only remarkable walls we have in North America, though we have a good deal of Virginia fence, it is true.
    Henry David Thoreau (1817–1862)

    There was a sound of revelry by night,
    And Belgium’s capital had gathered then
    Her beauty and her chivalry, and bright
    The lamps shone o’er fair women and brave men;
    A thousand hearts beat happily; and when
    Music arose with its voluptuous swell,
    Soft eyes looked love to eyes which spake again,
    And all went merry as a marriage-bell;
    But hush! hark! a deep sound strikes like a rising knell!
    George Gordon Noel Byron (1788–1824)