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:
“I never thought that the possession of money would make me feel rich: it often does seem to have an opposite effect. But then, I have never had the opportunity of knowing, by experience, how it does make one feel. It is something to have been spared the responsibility of taking charge of the Lord’s silver and gold.”
—Lucy Larcom (1824–1893)
“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)
“I still need more healthy rest in order to work at my best. My health is the main capital I have and I want to administer it intelligently.”
—Ernest Hemingway (1899–1961)