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Investment return and risk are fundamental to understanding market behavior.

Return on investment is essentially profit made by an investor. Profits and

losses must be analyzed carefully, as simple percentage comparisons give

misleading answers. Risk refers to the probability of depreciation as well as

its potential magnitude, which can exceed original invested amount. Risk and

return on investment are directly correlated; higher risk begets a smaller

chance of high return and vice versa.

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Q: The concepts of return on investment and risks?
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Objective of investment?

The objective of investment is to get returns. This is the reason why people will evaluate all the risks involved so as to estimate the return on investment.


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


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There are so many risks that a manager faces on diverting financial assets. This may include misuse of the assets and not getting the expected return on investment among others.


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Most investment plans, like business plans, should contain following parts: * What is it you are investing in? * What kind of investment type will you use? * What return on investment do you intend to gain, and how is this realized? * What risks are there, that might reduce or eliminate your profit? * What contingencies do you factor in to mitigate those risks? * How are you prepared to deal with unforseen opportunities? * Will you need external investors? How will you entice them? * What legal conditions are applied, how is the investment covered?


When to start investing?

The right moment to start investment is the moment you feel comfortable with the risks involved. There are tons of investments out there that deliver a good return, but if you don't feel comfortable with the risks involved you will have a lot of sleepless nights.


How is ROI or return on investment calculated?

Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


What are the objectives of investment analysis?

This analysis is important to determine the risks of the investment. This is important before making an investment decision.


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Return On Investment in fmcg?

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Return on investment and safety of investment?

Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.


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Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.