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:

    Science with its retorts would have put me to sleep; it was the opportunity to be ignorant that I improved. It suggested to me that there was something to be seen if one had eyes. It made a believer of me more than before. I believed that the woods were not tenantless, but choke-full of honest spirits as good as myself any day,—not an empty chamber, in which chemistry was left to work alone, but an inhabited house,—and for a few moments I enjoyed fellowship with them.
    Henry David Thoreau (1817–1862)

    To call a posit a posit is not to patronize it. A posit can be unavoidable except at the cost of other no less artificial expedients. Everything to which we concede existence is a posit from the standpoint of a description of the theory-building process, and simultaneously real from the standpoint of the theory that is being built.
    Willard Van Orman Quine (b. 1908)

    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)