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:

    “Liberty requires opportunity to make a living—a living decent according to the standard of the time, a living which gives a man not only enough to live by, but something to live for.”
    —Franklin D. Roosevelt (1882–1945)

    “History is strewn with the wrecks of nations which have gained a little progressiveness at the cost of a great deal of hard manliness, and have thus prepared themselves for destruction as soon as the the movements of the world gave a chance for it.”
    —Walter Bagehot (1826–1877)

    “Many of us do not believe in capital punishment, because thus society takes from a man what society cannot give.”
    —Katharine Fullerton Gerould (1879–1944)