Technically, the required return of an investment can be determined by determining the investments risk profile. However, many intangible factors influence an investor’s decision to invest. Discuss the intangible factors that may come into play in the investment decision process.

Q: If markets are efficient, an investor's best investment strategy involves the correct choice of

A: This is multiple choice question, in this we explained that if Market is efficient then what's the…

Q: Compare and contrast the differing methods that can be used to account for risk within the context…

A: Investment project is referred to as the set of an inter-dependent tasks as well as activities,…

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: Describe the process of accepting or rejecting an investment to make a comparison of alternative…

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Q: Explain the difference between risk and uncertainty in the context of investment appraisal, and…

A: Investment means engaging your funds to generate income for the future. Return from the investment…

Q: What is an investment center manager's advise if the firm intends to adopt the return on investment…

A: This question explains about an investment center manager's advise if the firm intends to adopt the…

Q: Discuss the difficulties in using Net Present Value [NPV] as an investment appraisal method.

A: The net present value method is used by the company for the evaluation of the profitability of…

Q: Explain how you would evaluate the expected rate of return from the investment (purchasing a…

A: Investment decisions are concerned with the most efficient use of funds in order to maximize the…

Q: Demonstrate the link between net present value and internal rate of return and how they may be used…

A: According to the question, the relationship between net present value and internal rate of return

Q: why is a need for investor to evaluate the investment ?

A: All investments will have a certain percentage of risk. To control the future risks in the…

Q: The following is a concise explanation of the primary investment risk characteristics that investors…

A: Introduction : Investing assessment and appraisal is crucial for investors because it is a kind of…

Q: Critically assess how a failed capital project may also shape the future strategy of investment…

A: Capital projects are nothing but a long-term capital-intensive initiative aimed at expanding on,…

Q: While comparing investment returns is an important starting point in evaluating investment…

A: Following are the steps involved in the performance analysis of investments:Identification of the…

Q: Give an example of a liquid investment and an illiquid investment. Discuss why you consider each of…

A: In finance, the term investment represents a financial technique to allocate surplus funds into an…

Q: Whether the following statement is true or wrong. Briefly explain your answer. "It is impossible to…

A: The asset which has no risk associated with it is known as risk free asset. The return from risk…

Q: What is risk, and how does it affect decisions about investment?

A: Risk and return are related to each other while making investment.

Q: Explain Due Diligence in Real Estate Investment Risk Analysis?

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

Q: What strategies are available to eliminate timing problems in investments? Explain Briefly

A: Introduction to Investments  Investment is referred to as the asset which is created with the…

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: Which of the following best explains the role of diversification as part of an investment strategy?…

A: Diversification refers to the investment strategy that can be used by an investors so that they can…

Q: Whenever you make an investment decision, you need to consider its impacts on the diversification of…

A: Investment decision and diversification go hand in hand. One should be careful while making an…

Q: The expected value of an investment: Answer a. Is what the owner will receive when the investment is…

A: Expected Return refers to return anticipated by an investor while making investment. It may differ…

Q: In pursuing one’s investment objective, which is specified in terms of return requirement and risk…

A: Investment is an activity that is engaged in by people who have savings. It can be in two forms such…

Q: What are the issues that a finance manager considers in taking investment decision?

A: The term investment decision refers to the decisions that are related to how the funds of the…

Q: Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free…

A: Financial planning is a term that refers to estimating a company's funding needs and determining how…

Q: Explain why risk and uncertainty should be considered in the investment appraisal process.

A: Investment appraisal process has to be a thorough and a comprehensive process in order to enable…

Q: Does the Diversification require regular evaluating the assetsand realigning the investment mix?…

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Q: Explain if the operational risk is considered a risk or uncertainty? Why? If it is a risk, how can…

A: Operational Loss:   The risk involved in failures of Man, Machine, Material, and Methods during…

Q: How do you make an investment decision based on the IRR?

A: IRR is the return actually earned by the investor and discount rate is the return which the investor…

Q: which of the following best describes the underlying rationale for a written investment policy…

A: Investment policy statement is a document which shows all details about the investments like in…

Q: When comparing the performance of two investment alternatives, which characteristics of investments…

A: For comparison any investment alternative main thing required for Cashflow and certainty of cash and…

Q: describe the stages in the financial process and discuss the advantages of a process driving…

A: Financial Process: The term "financial processes" refers to the procedures and techniques that the…

Q: Is the investment risk concerned with the range of possible outcomes from aninvestment?

A: For a business, there are many types of risks associated with it. Some of the risks are credit risk,…

Q: Illustrate how risk related to investment

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: What are the main constraints or obstacles to implementing the investment management concept?

A: Investment management refers to the management of assets of an individual by the firm. It will…

Q: What are the techniques used in evaluating investments? List them and explain

A: There are various techniques used in evaluating investment options.  Som of them are: 1) Net present…

Q: What follows is a brief summary of major investment risk characteristics that must be considered by…

A: Investment evaluation and appraisal is important for investors because it is a form of fundamental…

Q: How to compare different assets in investment selection process?

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.