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:

    At no time in history ... have the people who are not fit for society had such a glorious opportunity to pretend that society is not fit for them. Knowledge of the slums is at present a passport to society—so much the parlor philanthropists have achieved—and all they have to do is to prove that they know their subject. It is an odd qualification to have pitched on; but gentlemen and ladies are always credulous, especially if you tell them that they are not doing their duty.
    Katharine Fullerton Gerould (1879–1944)

    The President has paid dear for his White House. It has commonly cost him all his peace, and the best of his manly attributes. To preserve for a short time so conspicuous an appearance before the world, he is content to eat dust before the real masters who stand erect behind the throne.
    Ralph Waldo Emerson (1803–1882)

    We saw the machinery where murderers are now executed. Seven have been executed. The plan is better than the old one. It is quietly done. Only a few, at the most about thirty or forty, can witness [an execution]. It excites nobody outside of the list permitted to attend. I think the time for capital punishment has passed. I would abolish it. But while it lasts this is the best mode.
    Rutherford Birchard Hayes (1822–1893)