What are the pitfalls of project and portfolio?

Q: What is investment timing option?

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

Q: What is the NPV of the project?

A: Capital budgeting methods are the methods used for finding the profitability of the 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: What are the sources of risk associated with project development?

A: Variations in returns of an investment from its expected returns are called risk. The risk of an…

Q: What is an efficient portfolio?

A: Introduction: An efficient portfolio is one that delivers the highest anticipated return at a given…

Q: What is the importance of portfolio management?

A: Portfolio management is the management of the risk and returns on the securities and the group of…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: Can someone give an example of Tangency portfolio?

A: The portfolio comprises of various securities or financial instruments available in the market for…

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: What is the y risk-free investment?

A: Risk-free rate of return is the rate of return that an investor expects from an investment in any…

Q: How is capital budgeting similar to security valuation? How is it different?

A: Capital budgeting is the process of evaluating various projects' net present value to arrive at a…

Q: What is the risk free return?

A: Rate of return is the return percentage which an investor gets from the money which has been…

Q: Describe the methods of determining the Project Risk?

A: Project risk is an uncertain event or circumstance that affects at any rate one objective of a task,…

Q: What are the three types of project risk?

A: Answer: Investor risk means that an investment’s future return may not be same as anticipated. So,…

Q: what is net present value in project management?

A: Net present value (NPV) is an important technique that is been used by the project manager in order…

Q: what are the benefits of combining Projects into a Portfolio?

A: A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash…

Q: What is CAPM and how it used in portfolio management?

A: Risk and return are the two main parts of any investment and before investing in any security or…

Q: What is the potentially acceptable investment alternative?

A: An alternative investment is a financial asset that doesn't can be categorized as one of the…

Q: the goal and purpose of the portfolio

A: Introduction : Any mix of capital instruments, like stocks, treasuries, as well as currencies, is…

Q: What is the purpose of portfolio management?

A: A portfolio is a systematic method of selection of investment mix to get benefit with a limited risk…

Q: What can be understood from active portfolio?

A: There are two strategies or approaches which can be used in management of portfolios which are…

Q: What is option value (of project)?

A: Option value of the project is the real option approach of evaluating projects that views selecting…

Q: What are the shortcomings of the internal rate of return criterion? How do you make an investment…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

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: How do the Analysis Period Equals Project Lives?

A: It is PW analysis's best situation. Set the study time to suit the lives of options, in which all…

Q: Which is the most important breakeven in the analysis of a project?

A: Projects could be analyzed by using net present value (NPV) method. In this method, projects are…

Q: What does a project’s stand-alone risk reflect?

A: Stand alone risks are risks that are associated with a particular asset or a project. Companies when…

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: Can we consider Project Risk by Discount Rate?

A: The discount rate is an interest rate that is used in computing the present value of the future cash…

Q: What are the methods of describing Project Risk?

A: The project risk is an unpredictable occurrence or situation that has an effect on at least one…

Q: How can we consider the Future Worth and Project Balance?

A: The question is based on the concept of evaluation of long term investment, future worth and project…

Q: If a firm can structure a project such that expenditures can be madein stages rather than all at the…

A: When expenditure of any project are made in different stages rather than at the beginning then 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 is the relationship between risk and return?

A: Risk return relationship: The association among risk and return is recognized as the risk-return…

Q: Illustrate the main factors of Project Risk?

A: The project risk is defined as the uncertain event or condition that occurs mainly on positive or…

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

Q: Describe the investment analysis?

A: Investment analysis is defined as the process of evaluating an investment for income, risk, and…

Q: Discuss the benefits of combining Projects into a Portfolio. Are there any pre-requisites to form a…

A: some of the benefits of combining projects into a portfolio are  it improves the project selection…

Q: List the factors of time and uncertainty of investment project?

A: Investment projects are a complex environment and there are many risks involved. one of those group…

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: why do we need to quantify the investment risk and returns?

A: Almost all investments possess certain risks and return.

Q: How can we Consider Project Risk by Discount Rate?

A: In corporate finance, a discount rate is the rate of return used to discount future cash flows back…

Q: What is the project's internal rate of return?

A: Answer has been given in the next sheet.

Q: Illustrate investment risk?

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