Investment Report: Personal and Professional Financial Analysis

This report provides an in-depth analysis of investment strategies and financial decision-making processes. It begins with an overview of investment, its objectives, and different stages, including risk assessment, liquidity, and inflation hedging. The report differentiates between investment, speculation, and gambling, highlighting their key differences and time horizons. The author reflects on their personal investment experiences, focusing on decisions made during the last financial year and the rationale behind choosing long-term investment over speculation and gambling. The report further lists and evaluates past decisions related to customer evaluation, investment companies, portfolio styles, risk vs. reward, and marketing, along with their outcomes. Finally, the report outlines future professional and personal decisions, including investment policies, analysis methods, portfolio building, and income sources, along with associated stakeholders and objectives. The report also lists references used in the analysis.

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REPORT ON OPERATION ANALYTIC.
INSTITUTION
NAME
DATE

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QUESTION 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 risks
to 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 of
risk, 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 act
of 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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in market action and price movement while in the investment the investors are
focused on the fundamental factors that affect investment. The different line
between investment and speculation is very thin, and it is only time factor that
involved 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 Speculation
it is taking up business risks with hope of taking long terms
gain It is taking up business risks with hope of taking
it is focused on fundamental factors that affect investment Speculation is interested on market action and p
Investment gambling
long term gains of money It’s a short term investment in a game of chance
employs commercial risk employs artificial risk
The investment is a long term taking business risks for gain while speculation and gambling are
short term investment. (Van Cauwenbergh, 1966)
QUESTION 3

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A. During the last financial year, I majored on investment rather than speculation. I was
majoring on short-term investment which sometimes I incurred losses but since I
started long-term taking of risks on the business and proper management hence high-
profit gains.
B. Speculation and gambling were my alternatives.
C. I discovered gambling when I started attending to a casino, and I could place a bet
where I could win or lose. On speculation during the shortages of some commodities
in the market, I could utilize the business niche and obtain profit.
D. I decided to major on investment since the outcome was more compared to the other
alternatives which were not predictable and the probability of losing your capital was
higher compared to a long-term investment.
E. I participate in the running of my investment as am the manager of the securities
where I ensure diversification of the portfolio to reduce the risk of losses. (Michelson,
2004)

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QUESTION 4.
A.
List five decisions
faced in the past
Evaluation of
customers
Investment
companies
Portfolio
styles
Risk vs
reward
Marketing and
sales
How did you
make each
decision
Targeted the
potential
customers
Venturing
in less risk
companies
Diversificatio
n
Reward
maximization
and risk
minimization
Major on
advertisement.
Did you
experienced a
good outcome
Yes no yes yes No
Did you use a
good decision
process
Yes yes yes yes Yes
B. The list of professional or personal decisions that I may face in a near future.
The professional are
1. How will I handle my investment policies such as investible funds, objectives and
knowledge?
2. Which means will I be using for my investment analysis such as market, industry and
company.
3. What will be my valuation like future value?

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4. How will I build my portfolio case like diversification, selection and selection?
5. Evaluation of the portfolio that is appraisals and revision.
The personal are
6. What will be my sources of income, is it loans, profits plough back?
7. Which will be my Medias of advertisement?
8. The people I will employ
9. The nature of machines I will purchase
10. The source of raw materials in the near future and their alternatives.
Future decision stakeholder
Mass advertisement of goods and services Salespersons
Framing of investment policies Economist
Valuation of the investment Statisticians
Analysis of the investment Statisticians
Risk and insurance analysis Actuaries
Government policies follow up Lawyer
Employment policies Management
Repairing of the company utilities Staffs
Customers education Employees
Custodians of bank accounts Accountants

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C.
Investment policy ⟶ analysis ⟶ valuation ⟶ portifolio construction ⟶ portifoloio evaluation
Personal objectives Professional objectives
High rate of profit Increase rate of return
Creation of employment Reduction of risks.
Growth of the country economy Hedge against inflation
A way of keeping me busy Liquidity
To acquire what am unable to produce Safety of the capital