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Investment Assignment | Operation Analytics Report

   

Added on  2020-05-08

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1REPORT ON OPERATION ANALYTIC.INSTITUTIONNAMEDATE
Investment Assignment | Operation Analytics Report_1

2QUESTION 2.A.The problem of my choice is investment.The investment is the act of the investors to employ the funds on the assets and capital with a main aim of capital appreciation. The investors employs money which is subjected to risksto asset which they expect to yield some gains over a period of time. It divided into various stages which ensure all steps followed for the success of the investment.B.The objectives of the investments include increased rate of return, reduction ofrisk, and safety of capital, liquidity, and hedge against inflation. The price of return is the end period value less beginning value plus dividends divide by the starting capital. Risk is the act of holding the securities which is related to the probability of the cash inflow being less than cash outflow. Liquidity is actof business having money all the times of the investment provides liquidity to the investment. Hedge against inflation in all the economies there is inflation the rate of return shows ensures there is a cover against the abnormal rise of goods and services. The selected investment area should ensure the safety of the starting capital and the profit acquired for avenue of capital in the regulatory framework.C.When the rate of return on any investment is high, the measurement rating of profit is higher, and when the rate of return is less, there is the possibility of loss incurring.D.The alternatives of investment can be either gambling or speculation. Speculation means taking up business risks with the hope of taking short terms gains. It involves the exchange of securities their main aim being getting profits from the times of price fluctuations. Speculations are interested
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3in market action and price movement while in the investment the investors arefocused on the fundamental factors that affect investment. The different line between investment and speculation is very thin, and it is only time factor thatinvolved is different from the investment. Gambling is a short term of the investment in a game of chance. The time required in gaming is short than in the other alternatives. A primary aim of gambling is entertainment while secondary goal is gaining profit. Gaming employs the artificial risks while investment employs commercial risks.E.investment Speculationit is taking up business risks with hope of taking long terms gainIt is taking up business risks with hope of taking short terms gains. it is focused on fundamental factors that affect investmentSpeculation is interested on market action and price movement. Investmentgambling long term gains of moneyIt’s a short term investment in a game of chance.employs commercial risk employs artificial riskThe investment is a long term taking business risks for gain while speculation and gambling are short term investment.[ CITATION Van66 \l 1033 ]QUESTION 3
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