elaborate on the difference between investing and savings in terms of the following: Growth of your...
elaborate on the difference between investing and savings in terms of the following:
- Growth of your money
- Risk involved
- Return on investment
- Timing of the investment/savings returns.
Homework Answers
| Solution | ||
| Difference between Investing and saving on the basis of following terms: | ||
| TERMS | Investing | Saving |
| Growth of your money | IN investing money is growth via return or value of investment increases | Growth of money is less effective which is even below nominal return. |
| Risk Involved | It has high risk involved | Less risk is involved on saving |
| Return on investment | Investing has higher return than saving as it has more risk involved | It has low return as compare to investing |
| Timing of the investment and Saving returns | investing is done when we money for earn interest and we need these money in short period and also to maintain our liquidity. And its return is high expected. | saving is done when we have extra money when we have no use of money for long period . Also save for future prospective. It return is quit low. |
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elaborate on the
difference between investing and savings in terms of the
following:
Growth of your...
. elaborate on the difference between investing and savings in terms of the following: Growth of...
. elaborate on the difference between investing and savings in terms of the following: Growth of your money Risk involved Return on investment Timing of the investment/savings returns.
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Please be careful with roundings :) Thanks! The CFO of MediSearch plc believes that investing into...
Please be careful with
roundings :) Thanks!
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Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you...
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Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you...
Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following stock market returns for the coming year: Return 40% 14% State of the Economy High Growth Normal Growth Recession Probability 0.2 0.7 0.1 a. Compute the expected value of a $1,000 investment over the coming year. If you invest $1,000 today, how much money do you expect to have next year? What is the percentage expected rate of return? Instructions: Enter...
can someone please read my risk and returns and let me know if it makes sense....
can someone please read my risk and returns and let me
know if it makes sense. if it does not could you explain please.
Thanks
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Please be careful with
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The CFO of MediSearch plc believes that investing into a project which will develop a new drug for fighting the flu virus, promises a long-term annual return of 10%. The expected return of the market index is RM = 14.4%, the volatility of the market index is OM = 12%, and the risk-free asset earns R = 4.8%. The CFO has studied similar projects of other companies and believes that the covariance between...
2.2.3 On the Bank of Montreal website is another RRSP example. The difference between a tax-sheltered investment and a non- sheltered investment is illustrated. The example gives the follow- ing information: RSP vs. Non-RSP Investing Amount Invested Years Invested Marginal Tax Rate Average Annual Return Total Savings RSP $10,000 30 years N/A 6% $838,016.77 Non-RSP $10,000 30 years 46% 6% $510,717.60 $327,299.17 Difference Verify the total savings figures given in this example.
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can someone please read my risk and returns and let me
know if it makes sense. if it does not could you explain please.
Thanks
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