Question

Please discuss the following in full answer: the financial environment and investing: If you were going...

Please discuss the following in full answer:

the financial environment and investing:

  • If you were going to invest money, given the current financial market status, where would you invest your money today?
  • What are some possible investment choices for you as an individual?
  • What factors influence your decision on what to invest in?
  • How does the economic climate affect what you invest in?
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Answer #1

Ans:-

I) I would like to make investment in a diversified portfolio . It's benefits are that it would reduce risk and it would help me to earn maximam. So few options available are either choose a small amount of risk venture offering high dividends. But I will also choose bundle having riskfree venture where I get assured rate of return.

II ) Riskiness of investment

    How easily I can get my money back in case I need my money to meet unseen demand

Rate of return

Transaction cost

III) Economic climate is an important factor. If economy is performing badly and future prospects also didn't look good then I should recommend to avoid investing . Also If inflation rate is high and persistent then one should avoid investing because inflation is itself a tax .

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