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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 does it mean when you say it is a risk-reward payoff when considering capital budget?
A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to have made when the position is closed (i.e. the reward).
According to economic intelligence unit maximum amount of foreign direct investment is received by?
china
How can I determine the cost of investment?
To determine the cost of investment, calculate the initial amount invested plus any additional costs such as fees or expenses. Subtract any income or returns earned from the investment to find the net cost.
What is a pv function?
The PV function returns the present value of an investment, which is the total amount that a series of future payments is worth presently.
What is the meaning of rate-of-return approach?
The rate-of-return approach is a financial method used to evaluate the profitability of an investment by calculating the expected return relative to its cost. This method considers the income generated by the investment and compares it to the initial investment amount, allowing investors to assess the potential gains over time. It is commonly used in capital budgeting and investment analysis to determine whether an investment meets desired performance benchmarks. Ultimately, it helps investors make informed decisions about where to allocate their resources for optimal returns.
What is the relationship between saving and investment in an open economy?
In an open economy, saving and investment are closely linked. When individuals and businesses save money, it can be used for investment in the economy. This investment can lead to economic growth and increased productivity. Conversely, if there is a lack of saving, it can limit the amount of funds available for investment, potentially slowing down economic growth.
How can I calculate the expected return on an investment?
To calculate the return on an investment you will fist write down the amount of your total investment including fees and any expenses. Next, write down your loss and finally calculate the return on investment by dividing the profit by total investment. www.moneychimp.com offers a compound interest calculator for your convenience.
The amount of an original investment is called?
the amount of an original investment is called
What method is used to determine taxable portion of each annuity payment?
The taxable portion of each annuity payment is typically determined using the "exclusion ratio." This ratio is calculated by dividing the investment in the annuity (the amount paid in) by the expected total return (the total amount expected to be received from the annuity). The result is the percentage of each payment that is considered a return of the investment and is thus not taxable. The remainder of the payment is taxable as ordinary income.
How can dollar-cost averaging selling help me optimize my investment strategy?
Dollar-cost averaging selling involves selling a fixed amount of an investment at regular intervals, regardless of market conditions. This strategy can help optimize your investment by reducing the impact of market volatility and potentially increasing returns over time.
How much should you pay in on 30000?
To determine how much you should pay on a $30,000 amount, you need to specify the context, such as whether it's a loan, investment, or purchase. For loans, the payment can vary based on interest rates and the loan term. For investments, consider the expected returns and time frame. If you provide more details, I can give a more accurate response.
