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How investment increase the returns?

Updated: 9/19/2023
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Q: How investment increase the returns?
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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.


What is the increase in the value of a investment?

basically it is the increase in the value of an investment.


How do I find out how much I will get in investment returns?

You should do your research prior to investing to find out the historical rate of return on your prospective investment. However, past returns are no indication of future returns.


What level at which the marginal production goes up with new investment?

The level at which marginal production goes up with new investment is generally referred to as the point of diminishing returns. Beyond this point, each additional unit of investment yields a smaller increase in output or productivity. This occurs as resources become more scarce or inefficiently allocated, resulting in a decrease in the marginal return on investment.


What statement describes a pair of stocks that meet this recommendation?

Investment counselors recommend buying stocks whose returns show a negative correlation in order to minimize the risk of big losses. ANSWER: A stock whose returns tend to increase when the returns of a second stock are decreasing.


What is the purpose of leverage in the forex market?

The purpose of leverage in the forex market is to significantly increase the returns provided in an investment using instruments such as "Options" "Futures" and "Margin Accounts"


What is the main tendency of investment recommendations of investment newsletters?

The large majority of investment newsletters make their money through investor subscriptions. No one is going to pay for investment advice that is subpar and most investors know that many active fund managers underperform the return of the overall stock market. Accordingly there is a tendency for investment newsletters to recommend riskier investments in the hopes of hitting a home run to increase portfolio returns which can then be used in the newsletter's advertising to increase the subscriber base.


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.


Define constant returns to scale?

My loose definition of constant returns to scale:Constant returns to scale occur when a given increase in output is brought about by the same proportional increase in returns.


What are the Questions asked by customer related to investment?

Some common questions are: # Risk profile - Chances of losing the investment # Returns on Investment # Investment Tenure # Reputation of the investment house # etc...


Investment to achieve high returns quickly?

venture capital


Why investment increases?

increase in investment will expand the productive capacity of the economy