Explain the factors determining the return on investment
Invest as early as you can save as much as possible optimize risk and returns through proper asset allocation and diversification. The first step is quantifying costs and then adding up all the hard dollars and cents your company will see in.
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One of the major attractions for FDIs is the profit or the return they get for the investment made.
. The risk may be raised by various factors such as wrong decision wrong timing of investment type of instrument the quantum of amount method of investment nature of the. Byrne offers a simple formula for calculating ROI. For example a bond might be expected to pay 500 every 6 months for the next 10 years.
Unless the return is substantially higher than what they could have. For example we can. Various theories have been developed from time to time to explain the behaviour of investment.
If 5 is the highest rate of return which is expected to be secured from any type of. Of course with many investments this is clearly an estimate. All of these factors should be part of your investment planning.
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