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:

    Life is short, the art long, opportunity fleeting, experiment treacherous, judgment difficult.
    Hippocrates (c. 460–370 B.C.)

    Keeping accounts, Sir, is of no use when a man is spending his own money, and has nobody to whom he is to account. You won’t eat less beef today, because you have written down what it cost yesterday.
    Samuel Johnson (1709–1784)

    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)