16 Questions
What is the essential element of investment?
Return
Which characteristic is inherent in any investment?
Risk
What does investment involve?
Risk and sacrifice
What is the primary objective of making investments?
Deriving a return
What is the possibility of variation in the actual return known as?
Risk
What is investment defined as?
Sacrifice made now to obtain a return in the future
What is the primary concern of an investor?
Maximizing return
Which factor affects the risk of an investment based on the text?
The nature of the investment
What does the safety of an investment imply based on the text?
Certainty of return without any loss of money or time
What does the term 'liquidity' refer to in the context of investments?
Marketability without loss of value and time
What is the objective of an investor as stated in the text?
Maximization of return
What does it mean for an investment to be 'liquid'?
Easily marketable without loss of value and time
What is meant by 'minimization of risk' as per the text?
Minimizing the probability that actual returns may be different from expected returns
What does 'investor' mean based on the text?
An individual or institution who commits money to investment products with expectation of financial return
What do investors generally desire in terms of returns and risk?
High returns with low risk
What is the main reason why people invest according to the text?
To earn a return from savings due to deferred consumption
Test your understanding of the concept of investment, including the definition of investment, the expectation of return, and the possibility of variation in actual returns. This quiz covers the fundamental concepts of investment.
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