While comparing investment returns is an important starting point in evaluating investment performance, it represents which part of the analysis?

Q: Can any one suggest me to check the relationship between human rationality in investment decision…

A: All investment choices are inalienably logical since one's hard-earned cash is being invested.…

Q: What text and supplemental information, is there a best choice for using any one specific method of…

A: Investment Valuation: Investment valuation refers to the techniques and procedures employed in…

Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: The terms capital budgeting and investment appraisal approaches are interchangeable. An…

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: Explain several ways of defining the concept of rate of return on investment?

A: Return on investment is the tool that can be used to measure the performance of the companies.  The…

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

A:

Q: What advantage does the Sharpe Ratio

A: Sharpe ratio is also known as Sharpes measure or reward to volatility ratio. It is the ratio…

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: 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: 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: 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: 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 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: What is the total investment approach?

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

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: Evaluation of the performance of an Investment center should only Include financial measures. True…

A: An investment centre is a business unit in a firm that can utilizes capital to contribute direct to…

Q: What is the return on investment (ROI)?

A: Introduction: An investment is the acquisition of an asset or object with the intention of earning…

Q: What is the preferred method of calculating investment turnover, residual income, and return on…

A: Introduction: It is a company unit that is assessed based on how its money is used rather than the…

Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…

A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…

Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: Capital Budgeting is the process to evaluate the potential of the project or Investment. Investment…

Q: Factors affecting investment decisions

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

Q: What is the most preferred method of an investment center manager among investment turnover,…

A: An investment center is the unit of a corporation that is assessed on the basis of the utilization…

Q: An NPV analysis is one part of a complete captial investment analysis. What is the second part that…

A: Introduction: An analysis of capital investment is the mechanism by which management prepares,…

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: Explain the difference between return of investment versus return on investment.

A: The ratio analysis helps to analyze the financial statements of the business.

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: “Explain the reasons why the net present value (NPV) method of investment appraisal is likely to be…

A: The Net Present Value (NPV) is a company's financial tool used to estimate the viability of…

Q: Discuss the significance of non-financial data in assessing the success of investment centers

A: Information that isn't financial : Non-financial data refers to features of a firm that cannot be…

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: Show and contrast how return on investment and residual income are used to evaluate the performance…

A: ROI  (return on investment =  ( Net Profit / Cost of the investment) X  100    Residual income =…

Q: What is the biggest advantage of using RI to evaluate investment centers?

A: The evaluation of investment centers based on whether the minimum rate of return of the company is…

Q: How do you measure Return on Investment (ROI) of alogistics firm?

A: Return on Investment (ROI) :               It represents the benefits earned by the investor in…

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: 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: 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 the investment center manager's preferred method for determining investment turnover,…

A: Introduction: It is a company unit that is assessed based on how its money is used rather than 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: 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: Critically evaluate the benefits and limitations of each of the different investment appraisal…

A: when evaluating the investment appraisal techniques it is important to understand its benefit as…

Q: How can we maximise our return on investment (ROI) and what role does a balanced scorecard play?

A: The return on investment is the measure of total return upon a particular amount of investment made…

Q: Explain the benefits of a Return-on-Investment structure within an investment center framework.

A: