Define the term investment pool?

Q: What is investment timing option?

A: Option with reference to investment or project refers a significant option that can affect the…

Q: Create a classification of investment chart to distinguish between simple and nonsimple investment?

A:

Q: Define the term elements associated with project financing?

A: Answer: Project financing is nothing but a long term, zero or minimal recourse funding option…

Q: Are there sources of value in an investment? what they are? and give an example for both?

A: Yes, there are various sources of value in an investment. An investment is a stock or a bond. People…

Q: What is financing feedback?

A: Introduction: Financing feedback is generated when interest expenditure is overestimated, reducing…

Q: Describe the technology that is commonly practiced in financial investment?

A: The question is based on the concept of FinTech methods used in taking investment decisions in the…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: Explain the types of investment risks with practical examples.

A: Investment risk - Investment risk is the probability of incurring losses from an investment made in…

Q: Which variables are to consider before making an investment decision? Describe about them.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Wat is investment

A: According to the standards, investment can be classified into three categories, i.e. held to…

Q: Explain the term Financing activities with an example?

A: Financing activities :

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: Define the term investing activities.

A: Investing activites refer to activities of a company which involves investment related activities…

Q: Investment projects fall within two types. What are they?

A: An investment project is a series of cash inflows and outpourings, normally beginning with a money…

Q: Explain Financial Engineering?

A: Introduction: Financial engineering is nothing but application of quantitative methods in financial…

Q: Give an example of an IFC Investment.

A:

Q: Explain Target Return on Investment?

A: Investments are done to get the return on the same. Generally, investments are done when an…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Describe the affects of the present value of an investment.

A: Present value of the investment: Present value of the investment is calculated using the cash flows…

Q: Explain the problem of a capital-investment?

A: For the financing of capital investment, generally, the company considers operating cash flow of its…

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired…

Q: Which is the most accurate and commonly-used Investment Appraisal Method?

A: The profitability criteria of a project over the other can be considered by doing an analysis, that…

Q: What is project financing?

A: Project financing is an opportunity to finance long-term, nil, or restricted capital accessible to a…

Q: What do you mean by rate of return on the investment?

A: What do you mean by rate of return on the investment?

Q: What is fund capital?

A: Capital Fund: It is the Excess of assets over liabilities for non-profit organizations is termed as…

Q: Describe the Investment-Pool Concept?

A: Investment pools are institutional elements that are pooled speculation structures, with the…

Q: Which are the several ways of defining the concept of rate of return on investment?

A: Answer: Return on investments is an instrument which can be used to calculate the company’s…

Q: In order to determine whether an investment is visible, what factors should be considered?

A: For the evaluation of a task, no fixed steps that have to be taken. Numerous things should be…

Q: Define investments

A: Investments: Investment is defined as an allocation of money with the prospect of some future…

Q: How can I calculate the NPV of an investment?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: Explain the Financing Activities?

A: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding…

Q: Distinguish between simple and nonsimple investment with examples?

A: A simple investmentUnder it, there is negative initial cash flow and in the series of net cash flow,…

Q: Explain with example Investing Activities?

A: Statement of cash flows:   This statement reports all the cash transactions which are responsible…

Q: which investment vehicle is better

A: Investment vehicles are the ways in which investors can invest and seek to grow their investment…

Q: Define the term neutral money.

A: Economics: Economics refers to the social science that deals with the production, distribution and…

Q: Explain term sinking-fund factor (SFF)?

A: Sinking-fund factor (SFF) refers to a ratio that is used to compute the future value of an annuity…

Q: Describe the process of Incremental-Investment Analysis?

A: The question is based on the concept of Incremental analysis, the method is a problem-solving…

Q: Define Market-oriented investors

A: Putting amount in a scheme to earn return is known as investment. Before making an investment,…

Q: How do we use the computed figure when evaluating an investment alternative?

A: There are various computations available for evaluation of investment alternatives.  The rate of…

Q: What is meant by an investment project’s internal rate of return? How is the internal rate of return…

A:

Q: Describe the process of the Net-Investment Test?

A: The Net-Investment test is done to figure out if an investment is a 'Pure investment' or a 'Mixed…

Q: What is e Direct Investment?

A: Direct Investment is an important concept in the world of finance. Direct investment is also…

Q: What is the portfolio investment concept?

A: Portfolio is a group of stock, shares and bonds owned by the investors. It is a combination of asset…

Q: Illustrate investment risk?

A: Investment risk is the risk associated with the probability of losses occurring in relation to the…

Q: Explain Financing Project Development?

A: Introduction  Project finance refers to the funding of long-term projects, such as public…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.