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)

    “Greeting people doesn’t cost you anything except a roll of your tongue.”
    —Chinese proverb.

    “That monstrous tuberosity of civilised life, the capital of England.”
    —Thomas Carlyle (1795–1881)