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Q: What are the factors on which risk involved in investment depends?
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What is the risk involved in business debt?

Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.


What are some of the risks involved in investing in Bonds?

Bonds are one of the most preferred investment instruments for the risk averse investor who wants a decent return on investment (ROI) and capital preservation at the same time. Bonds are debt obligations which pay out a fixed interest on the invested sum and pay back the whole invested principal at maturity. Unfortunately, Bonds are not so straight forward as they might sound. There are many risks involved in investing in Bonds. These risks can cause losses to the investors bond portfolio and defeat the whole purpose of capital preservation. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk


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.


Are bonds low risk?

Bonds are one of the most preferred investment instruments for the risk averse investor who wants a decent return on investment (ROI) and capital preservation at the same time. Bonds are debt obligations which pay out a fixed interest on the invested sum and pay back the whole invested principal at maturity. Unfortunately, Bonds are not so straight forward as they might sound. There are many risks involved in investing in Bonds. These risks can cause losses to the investors bond portfolio and defeat the whole purpose of capital preservation. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk


Describe the three types of organizational risk?

Organization bears certain risks which includes investment risks, budgetary risk, program management risk, legal liability risk, safety risk, inventory risk and the risk from investment systems.Managing all these risks is not an easy task.

Related questions

What are the factors that investor keep in consideration while preferring investment in stock over savings?

The higher risk involved in investing in stock. He should also keep in mind the time horizon of investment, as investment in stocks is considered as long term investment.


What is risk return relationship?

The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.


What is the risk involved in business debt?

Mainly 3 types of risks are involved in the debt ie. interest rate risk,Liquidity risk & credut risk. Remeber that debt doesn't mean the risk free investment.


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.


Do all credit reports show the results and risk factors involved with identity theft?

Not all credit reports show this listed out. TransUnion and Expedia show the risk factors involved. Most of the credit reports show the risk factors of what could happen should your idenity be stolen.Identity theft can have bad consequences.


Which form of investment has the most amount of risk involved savings account or checking account or mutual fund?

Out of the three options, a mutual fund has the most amount of risk involved. While a savings account and checking account typically have very low risk, mutual funds are subject to market fluctuations and can experience losses. The level of risk in a mutual fund depends on the types of assets it holds, such as stocks or bonds.


What are the four factors in risk assessment?

risk assessment means; 1. dividing job as different stages. 2. what are the risk involved in it. 3.classification of risk. 4. control measures/rectifications.


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 is a good interest rate for a contract purchase?

There is no simple answer, it depends on the level of risk involved.


What are some of the risks involved in investing in Bonds?

Bonds are one of the most preferred investment instruments for the risk averse investor who wants a decent return on investment (ROI) and capital preservation at the same time. Bonds are debt obligations which pay out a fixed interest on the invested sum and pay back the whole invested principal at maturity. Unfortunately, Bonds are not so straight forward as they might sound. There are many risks involved in investing in Bonds. These risks can cause losses to the investors bond portfolio and defeat the whole purpose of capital preservation. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk