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:
“Science with its retorts would have put me to sleep; it was the opportunity to be ignorant that I improved. It suggested to me that there was something to be seen if one had eyes. It made a believer of me more than before. I believed that the woods were not tenantless, but choke-full of honest spirits as good as myself any day,—not an empty chamber, in which chemistry was left to work alone, but an inhabited house,—and for a few moments I enjoyed fellowship with them.”
—Henry David Thoreau (1817–1862)
“Now that is the wisdom of a man, in every instance of his labor, to hitch his wagon to a star, and see his chore done by the gods themselves. That is the way we are strong, by borrowing the might of the elements. The forces of steam, gravity, galvanism, light, magnets, wind, fire, serve us day by day and cost us nothing.”
—Ralph Waldo Emerson (1803–1882)
“If Los Angeles has been called “the capital of crackpots” and “the metropolis of isms,” the native Angeleno can not fairly attribute all of the city’s idiosyncrasies to the newcomer—at least not so long as he consults the crystal ball for guidance in his business dealings and his wife goes shopping downtown in beach pajamas.”
—For the State of California, U.S. public relief program (1935-1943)