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:
“Shears: You mean, you intend to uphold the letter of the law, no matter what it costs?
Colonel Nicholson: Without law, Commander, there is no civilization.
Shears: That’s just my point. Here, there is no civilization.
Colonel Nicholson: Then perhaps we have the opportunity to introduce it.”
—Michael Wilson (1914–1978)
“History is strewn with the wrecks of nations which have gained a little progressiveness at the cost of a great deal of hard manliness, and have thus prepared themselves for destruction as soon as the the movements of the world gave a chance for it.”
—Walter Bagehot (1826–1877)
“The great dialectic in our time is not, as anciently and by some still supposed, between capital and labor; it is between economic enterprise and the state.”
—John Kenneth Galbraith (b. 1908)