Opportunity Cost of Capital

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:

    “Familiarity breeds contempt. How accurate that is. The reason we hold truth in such respect is because we have so little opportunity to get familiar with it.”
    —Mark Twain [Samuel Langhorne Clemens] (1835–1910)

    “I acknowledge that the balance I have achieved between work and family roles comes at a cost, and every day I must weigh whether I live with that cost happily or guiltily, or whether some other lifestyle entails trade-offs I might accept more readily. It is always my choice: to change what I cannot tolerate, or tolerate what I cannot—or will not—change.”
    —Melinda M. Marshall (20th century)

    “We make needless ado about capital punishment,—taking lives, when there is no life to take.”
    —Henry David Thoreau (1817–1862)