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:
“I only desire sincere relations with the worthiest of my acquaintance, that they may give me an opportunity once in a year to speak the truth.”
—Henry David Thoreau (1817–1862)
“In the early days of the world, the Almighty said to the first of our race “In the sweat of thy face shalt thou eat bread”; and since then, if we except the light and the air of heaven, no good thing has been, or can be enjoyed by us, without having first cost labour.”
—Abraham Lincoln (1809–1865)
“It is a capital blunder; as you discover, when another man recites his charities.”
—Ralph Waldo Emerson (1803–1882)