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:
“In considering the ledger equal, understand the greatest gift you have given your parents is the opportunity to raise you. The things a child gets from parents can’t compare to the things a parent gets from raising a child. Only by experiencing this can you understand the degree to which children give meaning to parents’ lives.”
—Frank Pittman (20th century)
“It may cost me twenty thousand francs; but for twenty thousand francs, I will have the right to rail against the iniquity of humanity, and to devote to it my eternal hatred.”
—Molière [Jean Baptiste Poquelin] (1622–1673)
“There is no private house in which people can enjoy themselves so well as at a capital tavern.... No, Sir; there is nothing which has yet been contrived by man by which so much happiness is produced as by a good tavern or inn.”
—Samuel Johnson (1709–1784)