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 the genuine hope that this peace will be permanent, we take the opportunity to pay homage to all our fighters, commandos and volunteers who have paid the supreme sacrifice. They did not die in vain. The union is safe.”
—Combined Loyalist Military Command. New York Times, p. A12 (October 14, 1994)
“[M]y conception of liberty does not permit an individual citizen or a group of citizens to commit acts of depredation against nature in such a way as to harm their neighbors and especially to harm the future generations of Americans. If many years ago we had had the necessary knowledge, and especially the necessary willingness on the part of the Federal Government, we would have saved a sum, a sum of money which has cost the taxpayers of America two billion dollars.”
—Franklin D. Roosevelt (1882–1945)
“Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”
—Abraham Lincoln (1809–1865)