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:
“Life is short, the art long, opportunity fleeting, experiment treacherous, judgment difficult.”
—Hippocrates (c. 460–370 B.C.)
“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)
“I still need more healthy rest in order to work at my best. My health is the main capital I have and I want to administer it intelligently.”
—Ernest Hemingway (1899–1961)