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 am firmly opposed to the government entering into any business the major purpose of which is competition with our citizens ... for the Federal Government deliberately to go out to build up and expand ... a power and manufacturing business is to break down the initiative and enterprise of the American people; it is the destruction of equality of opportunity amongst our people, it is the negation of the ideals upon which our civilization has been based.”
—Herbert Hoover (1874–1964)
“The cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.”
—Henry David Thoreau (1817–1862)
“A good many have been thrown out on their broad capital bases.”
—John Dos Passos (1896–1970)