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Mutually exclusive investments refer to two or more investment options where choosing one investment option means rejecting all the other investment options. In other words, these investment options cannot be undertaken simultaneously due to limited resources or other constraints. For example, if an investor has to choose between investing in a new project or expanding an existing project, these investments are mutually exclusive.

The choice of one investment option means that the investor must give up the opportunity to invest in the other. The decision to choose one investment option over the other should be based on the expected return, risk, and other relevant factors.

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1solutions

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15y ago

Mutually exclusive investments means that if you choose to invest in Investment A that you can not invest in Investment B and vice versa. This may be caused by either contractual limitations (i.e. possibly a governmental regulator may forbid a corporation from buying both Company A and Company B) or by a lack of sufficient funds to invest in both (i.e. if you have only $100K to invest and you invest in a $100K bond, you will not have any money left to invest elsewhere).

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Q: What does the term mutually exclusive investments mean?
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What does the term 'mutually exclusive' mean?

The term mutually exclusive refers to 2 or more events of incidents, in which the happening of one event precludes the happening of the other. Mutually exclusive can be applied less formally to the dating world, in which a couple who has been dating become more serious, and therefore mutually exclusive with one another.


Can two mutually exclusive events occur at the same time?

No because the term mutually exclusive implies the the trials that could result in these events are sequenced in time.


What does classifying triangles mean?

Some triangles can be classified by only term, and some triangles fall into two overlapping, non-mutually-exclusive categories.


What does it mean to say two things are mutually exclusive?

A term used in Data Management courses to be mutually exclusive means when two things have nothing in common. In a Venn Diagram this looks like two circles side by side instead of the regular two over lapping circles.


Term for two mutually exclusive words like death and life?

Mutually exclusive. The two events can also be exhaustive if there is no other possibility. For example, if you believe in a state of spiritual limbo, then there is a third possible outcome. In that case death and life are no longer exhaustive.


Should mutually exclusive be removed from the English language?

Why do you ask? Do you think mutually exclusive is redundant, like mutually agree? Or do you think the word mutually is misused in that phrase? The word mutualimplies reciprocity. If two people have mutual hatred, they hate each other. (Some people use mutual to mean shared in common, as in our mutual friend. Not all linguists agree on that usage, however.) It is redundant to say two people have mutual hatred for each other. The last three words are superfluous. They have mutual hatred and Their hatred is mutual are adequate, as is They have hatred for each other and They hate each other. So what about mutual exclusivity or mutually exclusive? If the the exclusion is reciprocal, then the term is okay. If two things are mutually exclusive, they can't exist together; they exclude each other; the existence of one precludes the existence of the other. That implies reciprocity. I don't have a problem with either term and think permanent banishment from the language is a bit extreme.


What is mutual exclusive in theology?

It's more of a philosophical term in general. It refers to two or more conditions which can't be true at the same time. For instance, the statements "There is a god." and "There is no god." are mutually exclusive.


Does mutually mean equal?

No. Mutually describes having the same relationship, where equal is a term that better describes value and/or equality.


When should investments be classified as current assets?

When company make investments for short term that is less then one year time then these investments called current assets but while investments are for long run then those called long term investments.


What is the difference between long-term and short-term investments?

From an accounting perspective, short-term investments have a life cycle of less than 12 months; long term investments have a life cycle of 12 months or longer.


Is there a guide for short term investments online?

There are several companies online that offer short term investments. They make it simple to make daily, weekly or monthly investments. They offer the ability to make investments starting at $4 and up.


An increase in investments in long term securities will?

decrease cash flow from investing activities