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If we all knew that, we would all be rich. However, usually the investments returning the highest yields are those that carry the highest risk (of losing all you have invested).
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∙ 12y ago
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The investment option with the highest rate of return and highest degree of risk is?
junk bonds
What factors affect the rate of return of an investment at maturity?
What factors affect the rate of return of an investment at maturity?
How would you describe a rate of return?
An investment's rate of return is expressed as a percentage.
What it external rate of return?
The rate of return on an investment, adjusted for external factors, such as interest paid or received i.e. factors that are not the actual investment itself.
What is meant by the term average rate of return?
The term average rate of return is referring to the return on an investment. It is calculated by taking the total cash inflow over the life of the investment and dividing it by the number of years in the life of the investment.
Difference between marginal efficiency of investment and marginal efficicency of capital?
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
Basic determinants of investment?
The immediate determinants of investment are: (a) the expected rate of return and (b) the real rate of interest.
What is the highest rate?
Premium Investment Grade is the highest credit rating.Prime Investment Grade: No Risk of DefaultRating AgencyRatingS&PAAAMoodyAaaFitchAAA
What is the value for required rate of return?
The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.
When using the net present value method for evaluating an investment an increase in the required rate of return will?
The increase in rate of return will make the investment more difficult to be accepted.
Relation between marginal efficiency of capital and marginal efficiency of investment?
MEC is the highest rate of return expected from an additional unit of capital stock over its cost. MEI is the expected rate of return from one additional unit of investmeni.
Formula for average rate of return?
Average rate of return=Average profit /Initial investment*100% or ARR=Average profit /Average investment*100% or ARR=Total profit /Initial Investment*100%
