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- 1. WHAT ARE THE DIFFERENT TYPES OF INVESTMENTS AND EXPLAIN EACH TYPE. GIVE EXAMPLES.Questions ૨ The Common Characteristics of the Following Investment Vehicles a) Alternative Investments b) Poland Investments c) Bonds d) EquityQUESTION FOUR (4) Distinguish between the following: Financial asset and real asset. Institutional investors and individual investors. Investment and savings. Direct investment and indirect investment. Conservative investors and speculative investors.
- 3. What are the different investments? a. Create a diagram showing all possible investments. b. Which of the following investments are you considering to invest in? c. Which of the following investments are you NOT considering?Which of the following investments does a rational investor prefer? a. Investment A: E(R) = 12%, σ = 5% b. Investment B: E(R) = 10%, σ = 5.5% c. Investment C: E(R) = 11%, σ = 6% d. Investment D: E(R) = 11.5%, σ = 6%1.What is the relationship between an investment’s risk and its return? Please provide examples if possible. 2. Difference between Institutional Investors and Individual Investors.
- 1- explain what would you take to compare the worthness of two different fianancial investments? how would you choose which investment is amore attractive choice? 2- explain whether there are typically differences between the past performance and the future performance of a fianincial investment ? if not why not ?(b) Explain the relationship between net present value and internal rate of return, and show how they may offer complementary methods for evaluating investments.State TWO (2) money market instruments and discuss TWO (2) benefits of investing in money market securities.
- List one (1) advantage and one (1) disadvantage of using the NPV method in evaluating business investmentsWhich one of the following methods of analysis is most appropriate to use when two investments are mutually exclusive? Internal rate of return Average accounting return Profitability index Net present value6. "Accept investments that have positive net present values" is called the net present value rule. True or False?