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:
“We either praise or blame according to whether the one or the other provides the greater opportunity to let our power of judgment shine.”
—Friedrich Nietzsche (1844–1900)
“Mining today is an affair of mathematics, of finance, of the latest in engineering skill. Cautious men behind polished desks in San Francisco figure out in advance the amount of metal to a cubic yard, the number of yards washed a day, the cost of each operation. They have no need of grubstakes.”
—Merle Colby, U.S. public relief program (1935-1943)
“Industry has operated against the artisan in favor of the idler, and also in favor of capital and against labor. Any mechanical invention whatsoever has been more harmful to humanity than a century of war.”
—Rémy De Gourmont (1858–1915)