What are the benefits and corresponding risks of Financial Investment?

Q: Which is the accounting rate of return using the average investment?

A: Summary of the relevant information as provided in the question : cost of investment =    £…

Q: What is investment timing option?

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

Q: How can we determine which projects are pure investments?

A: A pure investment project refers to an investment wherein the firm borrows money from the project…

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: What are the risks of investing in an ESOP?

A: ESOP stands for Employee Stock Ownership Plan. It is a plan that gives an ownership interest in the…

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 is project financing? What are its advantages and disadvantages?

A: Project financing: It is a type of subsidizing for the most part foundation overwhelming,…

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: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: Which one of the following is an example of conventional form of investment?

A: Conventional investment categories includes trading investment options.

Q: What is reinvestment rate risk?

A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…

Q: Do the financial statements provide the basis for future investment analysis?

A: Yes, financial statements are helpful in providing the base for the analysis of investment in the…

Q: What is financial risk?

A: Risk refers to the undesired consequences arises due to the uncertainty. In other words, risk refers…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

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: What is investor-supplied capital?

A: A business might make a return on its invested capital that surpasses the cost of that capital.

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: Factors affecting investment decisions

A: Introduction: The Investment decision is the decision taken by shareholders or top-level management…

Q: Determine whether an investment is visible, which factors should be considered?

A: In terms of finance, the term feasibility of a project means to check if the project is economically…

Q: What kind of investment is considered to be risk-free?

A: A risk-free investment is an investment that has a minimum or no fluctuation from the expected…

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: Describe the Investment-Pool Concept?

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

Q: Explain the term Value investing strategies?

A: SOLUTION:-   Benjamin Graham, an American economist, investor, and professor, pioneered a new method…

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: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: What is the relationship of risk to the investment?

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

Q: When is a project is said to be a net investment?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

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: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

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: What is investment strategy?

A: Investment strategies are generally used by the investors in order to protect themselves from any…

Q: What is investor-supplied operating capital?

A: Investor-supplied operating capital is the capital that is provided by the equity shareholders and…

Q: What it the profitability index for investment project O?

A: Profitability Index = Present Value of cash flows / Initial investment  =$102,500 / $95,000 =1.079

Q: What is the key output of a financial plan?

A: A financial plan refers to the broader evaluation of an individual current and financial future…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: what are the benefits/risks of financial leverage?

A: Financial leverage is a condition wherein a company raises funds through the issue of additional…

Q: What is return on investment?

A: Return on investment  is a financial ratio which is measured as net income divided by the cost of…

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: Explain the term Motivations for Investing and types of investments?

A: Making investments in securities is a good method to mobilize the savings and earn a regular source…

Q: HOW TO KNOW THE RATIO OFCAPITAL INVESTMENT?

A: Ratio of capital investment is the ratio of net operating profit to total capital investment.

Q: What is e Direct Investment?

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

Q: What does “investment risk” mean?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: What are investment activities? Give some examples?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: Define the term elements associated with investment activities?

A: In a simple language investment is like investing money to get a return out of it or to get more…