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An investment is considered risky if the probability of loss is high. However, risky investments can also produce dramatic gains. So if you want to speculate that a given risky investment will pay off, you have to balance that against the possibility that you will lose some or all of the investment. That's why rash or all-or-nothing investment strategies lead to ruin.
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A country is experiencing economic problems. Many people are unemployed, and businesses have been making risky investments . The government decides to start more programs to help poor citizens find jobs, and to regulate corporate behavior?
what is the question
What is commodity investment?
Commodity investment is investing in a special type of market called the commodities market. This market is where raw materials like food, metals, and electricity are traded. This is a risky market to invest in, so buyer beware.
Why is investment spending more volatile than consumption spending?
It is more risky. It is long term and irreversible. It involves large amount of money. Jz guess.....
If average return on call option on stock is higher than average return generated by stock itself then why would an investor consider buying stock if they like the company?
Which would you rather have, an investment that yields 10% on average, but sometimes -10% and sometimes 30%, or an investment that yields 10% on average, but always varies between 5% and 15%? Most people would prefer the 2nd investment, because it is less risky ... yet both investments have 10% average. Riskier investments give higher yields, because people need to be offered something extra for the risk they are taking on. Options are risky, hence are higher yield.
Are all decisions economic decisions?
Economic factors are very important, but people do sometimes make decisions for other reasons. For example, if I decide to buy a blue shirt rather than a brown shirt, and both shirts cost the same amount, then I have made an aesthetic decision rather than an economic decision. But then, there is first the decision that I can afford to buy a shirt, which is an economic decision. People often choose to do things that will bring them economic hardship, such as buying luxuries that they can't really afford, so economics is not always the deciding factor. People may choose to defy economics, although that is very risky.
Is bluechip investment risky or safe?
RISKY
Why was stock bought on margin considered a risky investment?
Why was stock bought on margin considered a risky investment
How risky are hedage funds?
Hedge funds are considered a risky investment. The reason they are considered risky is because they are a type of fund that is not regulated.
What following investment choices is least risky?
CD's
How do risky investments influence businesses?
Risky investments make the company more vulnerable towards the market frictions. If the company is making risky investments - shareholders and debt-holders might require higher rate of return on their capital. Basically, the riskier the investment the more costly it is for the business.
How risky is mutual fund investment?
They are as risky as stock market investments. The only good thing here is the fact that, the fund is managed by experienced professionals, therefore the chances of making a profit are better compared to us investing in stocks directly.
Is it risky to invest in cash flow notes?
Cash flow notes can be a risky invfestment. There is no gurantee that you are able to get your initial investment back.
Why is investing a risk?
Investments in certain instruments are risky because there are chances that the value of our investment amount may go down.Ex: If we have invested in the stock marketand suddenly the market crashes due to global economic situations we may end up losing all or part of our investment.
What is the meaning of risky?
If something is described as 'risky' then it entails a moderate degree of danger. Risky is somewhere in between 'safe' and 'dangerous' on a scale of "cause for concern" regarding any activity.... be it anything from sport or investment.
Should you invest in Indian mutual funds at present?
Mutual fund investment is always risky. Read the terms and conditions very well before investment.
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.
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.
