Explain the factors determining the return on investment

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Investment Pyramid

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. Each of the persons investments has to beat the inflation rate present at that time for the return on investment to be positive. When investors consider the predictability of an investments payout they look almost exclusively at short-term predictability. Refine Your Retirement Strategy with Innovative Tools and Calculators.

The first version of the ROI formula net income divided by the cost of an investment is. If the inflation rate is more than the return on the. If you satisfy all three factors your tax home is the home where you regularly live.

Heres the most important part. Economies of scale market power and management quality. Stability of the Government.

Required Rate of the is the return expected out of the investment made. Required Rates of return are one of the key factors which influence an investment decision. Ad Our Top Picks For Online Brokers.

Economies of scale is the most obvious and cited rationale for companies to engage in. Actually Determinants of Required Rates of Return. Factors influencing Foreign Direct Investment in a Country.

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Selection of Projects to Maximise Returns. For successful operation of any business it is imperative that such investment of funds should be made so as to bring in benefits or best. Factor investing refers to a strategy that selects stocks based on a specific style or macroeconomic factors to enhance diversification and returns.

Least three contributing factors. But this is just putting it in very general and idealistic scenarios. There are very many factors that affect your investments and thus contribute to determining the actual return on investment.

Flexibility in the Government Policy. The style factors are. ROI Net Income Cost of Investment.

Determinants of Required Rates of Return. Pro-active measures of the Government to promote.

Return On Investment Roi Formula Meaning Investinganswers