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:
“As death, when we come to consider it closely, is the true goal of our existence, I have formed during the last few years such close relations with this best and truest friend of mankind, that his image is not only no longer terrifying to me, but is indeed very soothing and consoling! And I thank my God for graciously granting me the opportunity ... of learning that death is the key which unlocks the door to our true happiness.”
—Wolfgang Amadeus Mozart (1756–1791)
“Mining today is an affair of mathematics, of finance, of the latest in engineering skill. Cautious men behind polished desks in San Francisco figure out in advance the amount of metal to a cubic yard, the number of yards washed a day, the cost of each operation. They have no need of grubstakes.”
—Merle Colby, U.S. public relief program (1935-1943)
“Self-esteem evolves in kids primarily through the quality of our relationships with them. Because they can’t see themselves directly, children know themselves by reflection. For the first several years of their lives, you are their major influence. Later on, teachers and friends come into the picture. But especially at the beginning, you’re it with a capital I.”
—Stephanie Martson (20th century)