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How can one know if an investment opportunity is worth the risk?
Wiki User
∙ 11y ago
The on-demand business model is taking a stronger grip on digital economies. The fact is today one of the world’s largest companies are online platforms, like Uber, Gojek, urban clap, ola cabs, Handy, postmates, etc.
As new innovative ideas keep coming, an increasing number of mobile apps are filling up the space in smart devices. And even sometimes it became hectic to have a bundle of apps. Here the ‘super app’ idea kicked in and gave people the ease of using online multiple services from one single app. The Gojek app in Asia shows that People loved this idea and that is the need of the hour. After the success of Gojek, companies in Europe are shifting towards the super app-like model, for example, the ‘Uber Eats’ & ‘Uber Freight’ it is because the super apps are getting spotlight by the users rapidly.
We are a software solution company and as per the market potential, we have built a clone similar to Gojek to provide business opportunity for tech investors and entrepreneurs. Inteliware Technologies [app development compny]
Gojek clone is completely white-labeled and also we offer 100% customization, based on the client’s requirement.
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Inteliware Tech
Veronica Wilkinson
Wiki User
∙ 11y agoThere is an easy and common way to know whether an investment opportunity is worth the risk. The lower the risk and the higher the expected return, the better the investment.
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What is opportunity cost rate?
The opportunity cost rate is the rate of return you could earn on an alternative investment of similar risk.
What role does risk play in investment?
Risk is the probable ability of an investment to fail. I does increase two factors for the investor it garners increased valuation return. This higher value return is to lure or draw investors to the investment that may have a high margin of failure. The other factor that risk plays many individuals are wary of losing hard earned money making the opportunity favorable for more individual gains for the person willing to access it. So, it separates and makes the venture a rare opportunity with little competition for the investor. Also, high risk margin in an investment only draws individuals with the excess resources and money to substantially improve opportunity for the investment. There is little likelihood of lawsuits as the risk is established and listed upfront. All investments afford some gamble - to either lose or earn fortunes.
Why should an investor in secondary bond market?
As with any investment, an investor should invest in the secondary bond market if (s)he believes that the return obtainable through such an investment is worth the probability-factored risk of securing the investment.
How are volatility and risk related in an investment?
The risk of an investment can be measured by observing how volatile the return of that investment has historically been over a period of time.
How are volatility and risk related in investment?
The risk of an investment can be measured by observing how volatile the return of that investment has historically been over a period of time.
Why people invest where their is more risk?
Return on investment is directly related to risk of investment--the riskier an investment is, the more you have to pay people for making it.
What are the two key parameters used to make investment decision?
The two main parameters are: * Returns - Amount of returns we can expect on the investment * Safety/Risk - How risky the investment is. Generally risk and returns are directly proportional. Higher the risk on investment, higher would be the return on investment.
A risk of money to get something in return is called?
An investment.
How does a bank differ from a brokerage?
Risk taking ability is the difference. Bankers take the risk of investment on themselves whereas the brokerages do not take the risk of investment on themselves.
What is meant by a small risk of loss in an investment?
A small risk of loss in an investment means that there is less to lose by gambling in the investment. However, similarly, there is also less to gain.
Which is that investment that is taken out specifically to reduce or cancel out the risk in another investment?
a hedge
What if your firm has a risk-free investment opportunity where it can invest 160000 today and receive 170000 in one year for what level of interest rates is this project attractive?
170000/160000-1= .0625 = 6.25%
