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 (18441900)
“Oh high is the price of parenthood,
And daughters may cost you double.
You dare not forget, as you thought you could,
That youth is a plague and a trouble.”
—Phyllis McGinley (20th century)
“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 (18991961)