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:

    “Never miss an opportunity to allow a child to do something she can and wants to on her own. Sometimes we’re in too much of a rush—and she might spill something, or do it wrong. But whenever possible she needs to learn, error by error, lesson by lesson, to do better. And the more she is able to learn by herself the more she gets the message that she’s a kid who can.”
    —Polly Berrien Berends (20th century)

    “One must always be aware, to notice—even though the cost of noticing is to become responsible.”
    —Thylias Moss, African American poet. As quoted in the Wall Street Journal (May 12, 1994)

    “The basis of world peace is the teaching which runs through almost all the great religions of the world. “Love thy neighbor as thyself.” Christ, some of the other great Jewish teachers, Buddha, all preached it. Their followers forgot it. What is the trouble between capital and labor, what is the trouble in many of our communities, but rather a universal forgetting that this teaching is one of our first obligations.”
    —Eleanor Roosevelt (1884–1962)