Understanding Financial Investment

An investment that is easily saleable or marketable without loss of money and time.

Risk refers to the possibility of incurring a loss in a financial transaction due to variation in returns.

Maximization of return, minimization of risk, hedge against inflation.

<p>To achieve profits through capital gains rather than income from investments.</p> Signup and view all the answers

<p>They prefer less risky investments when faced with equal returns from different options.</p> Signup and view all the answers

<p>Financial markets facilitate the flow of funds, accumulation of capital, and production of goods and services.</p> Signup and view all the answers

<p>Financial investment is the allocation of money or assets that are expected to yield some gain over a period of time.</p> Signup and view all the answers

<p>The savings of individuals flow into the capital market as financial investments, which are then used in economic investments.</p> Signup and view all the answers

<p>Risk is inherent in any investment and can relate to loss of capital, delay in repayment, non-payment of interest, or variability of returns.</p> Signup and view all the answers

<p>Safety of an investment implies the certainty of the return of capital without loss of money or time.</p> Signup and view all the answers

<p>The longer the maturity period, the larger the risk associated with the investment.</p> Signup and view all the answers

<p>Risk and return are related in investments; usually, the higher the risk, the higher the expected return.</p> Signup and view all the answers