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

Q: Identify two important variables to be considered when making an investment decision.

A: While Investing every investor should consider two main variables:   1) Expected rate of return 2)…

Q: What are the two sources of value in an investment?  Given an example of each.

A: An investment is a process where the investors gives or outlays his or her capital in return of…

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

A: The most common type of capital budgeting techniques that are involved in decision making process of…

Q: As a future manager, how will you make use of your knowledge in the computation of the relationship…

A: Risk is the possibility of something which may cause an adverse of desired result. Risk includes…

Q: Explain why income, budget, age, holging period and risk taking capacity helps in making the best…

A: A portfolio is a set or the combination of all shares, stocks, cash, mutual funds, bonds. It is…

Q: What is investment decision making process ? And example

A: An investment decision refers to how a company's finances are to be invested in various assets in…

Q: Why should a client provide their investment manager with an investment policy statement? Be…

A: Investment policy statement acts as a guideline for investment managers to construct and manage the…

Q: Who is responsible for the financial evaluation of investment proposals?

A: The question is based on the concept of responsibility for the financial evaluation of investment…

Q: Which investing qualities are necessary to know when evaluating the performance of two investment…

A: This question explains about  investing qualities are necessary to know when evaluating the…

Q: why net present value is considered to be superior to internal rate of return as an investment…

A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…

Q: What further information might you consider or need before making a final investment decision?

A: Information required before for making a final investment decision are: Project investment Amount…

Q: Describe two important questions that financial managers must address before making an investment…

A: For both individuals and businesses, investment choices are critical. Choosing wisely pays you in…

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: 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: Describe the concept applied to the creation of an investment project portfolio?

A: The question is based on the concept of creation of portfolio for investment , which is combination…

Q: Factors affecting investment decisions

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

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: Illustrate the method of investment risk: Investment?

A: Following are the methods of investment risk: Investment: Standard deviation: Standard deviation…

Q: With the aid of appropriate diagram, explain the three main categories of attitude towards risk and…

A: The three main categories of attitude towards risk are: Risk averse Risk neutral Risk seeking

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 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 investment is preferable?

A: The present value is the present worth of the amount that will be paid or received at present.

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: 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: Comment on the use of probability in investment decision process.

A: Use of probability is a very important tool when it comes to making decisions with regards to…

Q: discuss the importance of considering risk when analyzing investments?

A: Risk refers to the probability of uncertainties about future .Risk may also be termed as volatility…

Q: How We use quantitative data to manage risk and create investment vehicles

A: We can define risk as the variations in return. While investing in a security, it is very important…

Q: which investment vehicle is better

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

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: Which is the single most important criterion for investment decisions?

A: NPV computes the existing value of future benefits by discounting future cash flows with a given…

Q: Why and how investors use environmental, social and governance (ESG) information in investment…

A: Introductions : In simple words, Environmental, social, and governance (ESG) methodology is a…

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: HOW TO KNOW THE RATIO OFCAPITAL INVESTMENT?

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

Q: Define the term Mean and Variance of an Investment Opportunity?

A: In terms of investment, mean is the average of all the sources of capital contributed with regard to…

Q: Investing activities include the (select the best answer):

A: Investing activities generated cash flow:- Cash flow from investment activities refers to the cash…

Q: Describe the investment analysis?

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

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: Describe the procedure of accepting or rejecting an investment?

A: The process of capital budgeting is used to measure the economic worth of investment proposals and…

Q: What does “investment risk” mean?

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

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

A: Almost all investments possess certain risks and return.

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial…

Q: Illustrate investment risk?

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

Q: Why are statistical approaches and tools important in investment decision-making?

A: This question explains about the statistical approaches and tools that are important in investment…

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…