In pursuing one’s investment objective, which is specified in terms of return requirement and risk tolerance, one should bear in mind the constraints arising in the investment process. What could be these investment constraints? Describe with examples.

Q: Can any one suggest me to check the relationship between human rationality in investment decision…

A: All investment choices are inalienably logical since one's hard-earned cash is being invested.…

Q: What are the implications of the weak‐form, semi-strong-form, and strong-form of the EMH for…

A: The Efficient Market Hypothesis (EMH) describes a stock market that is both operationally and…

Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: The terms capital budgeting and investment appraisal approaches are interchangeable. An…

Q: Identify two important variables to be considered when making an investment decision.

A: While Investing every investor should consider two main variables:   1) Expected rate of return 2)…

Q: Compare and contrast the differing methods that can be used to account for risk within the context…

A: Investment project is referred to as the set of an inter-dependent tasks as well as activities,…

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

Q: How do an investment's required rate of return vary with perceived risk? Explain with an example?

A: Required rate of return refers to the rate which the investors expects from their investments. This…

Q: With the aid of appropriate diagram, explain the three main categories of attitude towards risk and…

A: Categories are as represented below: a. Risk Seeker b. Risk-Averse c.  Risk Neutral

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: Explain the types of investment risks with practical examples.

A: Investment risk - Investment risk is the probability of incurring losses from an investment made in…

Q: Which variables are to consider before making an investment decision? Describe about them.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Explain why income, budget, age, holging period and risk taking capacity helps in making the best…

A: A portfolio is a set or the combination of all shares, stocks, cash, mutual funds, bonds. It is…

Q: Explain how you would evaluate the expected rate of return from the investment (purchasing a…

A: Investment decisions are concerned with the most efficient use of funds in order to maximize the…

Q: Which investing qualities are necessary to know when evaluating the performance of two investment…

A: This question explains about  investing qualities are necessary to know when evaluating the…

Q: Any investment project carries a variety of risks. Outline possible ways through which the risk…

A: An investment project could be for introduction of new product line in the business or capital…

Q: What further information might you consider or need before making a final investment decision?

A: Information required before for making a final investment decision are: Project investment Amount…

Q: Explain the rationale behind the

A: We have  to explain the aim behind the choice in selection of active and passive investment strategy…

Q: What information is considered a necessary evil in constructing an investment policy statement?

A: Provide appropriate guidance on portfolio construction and management Maintain focus on the…

Q: Discuss how the following factors could impact an Investment Decision: Risk and Uncertainty…

A: Investing is a complex decision and it is much more than just calculating the returns. How the given…

Q: t are the problems in using the Internal Rate of Return method when making decisions on which…

A: Internal rate of return is rate at which present value of cash flow is equal to the initial…

Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: Capital Budgeting is the process to evaluate the potential of the project or Investment. Investment…

Q: With the aid of appropriate diagram, explain the three main categories of attitude towards risk and…

A: The three main types of risks are a) risk averse b) risk neutral c) risk seeking   All the three…

Q: An NPV analysis is one part of a complete captial investment analysis. What is the second part that…

A: Introduction: An analysis of capital investment is the mechanism by which management prepares,…

Q: Why is the net-investment test the only way to accurately predict projectborrowing? Explain with an…

A: Definition: Net- investment measures the company's assets and investment like property, software,…

Q: Which of the following statements is true regarding the sensitivity analysis approach to investment…

A: In simple words we can understand the basic meaning of Sensitivity analysis " Whenever manager takes…

Q: With the aid of appropriate diagram, explain the three main categories of attitude towards risk and…

A: The three main categories of attitude towards risk are: Risk averse Risk neutral Risk seeking

Q: What are the shortcomings of the internal rate of return criterion? How do you make an investment…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

Q: example

A: There are many organisation who employing an financial investment strategies to mitigate risk

Q: Which of the followings is NOT in the scope of investment planning? a. To develop a risk-free…

A: Financial planning is a term that refers to estimating a company's funding needs and determining how…

Q: Explain why risk and uncertainty should be considered in the investment appraisal process.

A: Investment appraisal process has to be a thorough and a comprehensive process in order to enable…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: Answer the two questions below: a) What is the purpose of a project risk analysis, and why is it…

A: As you have asked multiple questions, we will solve the first question as per Bartleby policy.…

Q: Comment on the use of probability in investment decision process.

A: Use of probability is a very important tool when it comes to making decisions with regards to…

Q: which of the following best describes the underlying rationale for a written investment policy…

A: Investment policy statement is a document which shows all details about the investments like in…

Q: In choosing where to invest, return and risk for an investment must be compared. It is not…

A: Return and risk are the different sides of the same coin. Both are directly related to each other.…

Q: Is the investment risk concerned with the range of possible outcomes from aninvestment?

A: For a business, there are many types of risks associated with it. Some of the risks are credit risk,…

Q: Our range of investment choices-and their relative risk factors-may be classified into three types…

A: While choosing to make an investment decision, the main area of focus is their risk-return…

Q: How important is risk to returns and what are the key elements that must be analyzed in this regard…

A: Risk: The Cambridge dictionary gives one of the meanings of the word "risk" as:  "to do something…

Q: Critically evaluate the benefits and limitations of each of the different investment appraisal…

A: when evaluating the investment appraisal techniques it is important to understand its benefit as…

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial…

Q: Technically, the required return of an investment can be determined by determining the investments…

A: The required return on an investment is the return that is expected and assumed by an investor to be…