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:
“The wisdom of a learned man cometh by opportunity of leisure: and he that hath little business shall become wise.”
—Apocrypha. Ecclesiasticus, 38:24.
“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)
“That monstrous tuberosity of civilised life, the capital of England.”
—Thomas Carlyle (1795–1881)