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:
“Those words freedom and opportunity do not mean a license to climb upwards by pushing other people down. Any paternalistic system that tries to provide for security for everyone from above only calls for an impossible task and a regimentation utterly uncongenial to the spirit of our people.”
—Franklin D. Roosevelt (1882–1945)
“Keeping accounts, Sir, is of no use when a man is spending his own money, and has nobody to whom he is to account. You won’t eat less beef today, because you have written down what it cost yesterday.”
—Samuel Johnson (1709–1784)
“Many of us do not believe in capital punishment, because thus society takes from a man what society cannot give.”
—Katharine Fullerton Gerould (1879–1944)