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Consistency, simplicity, the risk-return relationship, investment objectives, diversification are the five basic investment considerations.

Question 5 options:

True

False

User Splrs
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6 votes

Answer:

True

Step-by-step explanation:

User Nasia Ntalla
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Answer:

True

Step-by-step explanation:

There are five basic investment considerations:

Consistency : This particularly refers to the income which comes from investment as it shall be consistent.

Simplicity : The investment shall not be complicated in nature and shall be based on simple calculations and understandings.

Risk Return relationship : This basically demonstrates that the relationship in between the risk associated with investment and that of return shall be identified and measured properly.

Investment objectives: These play a major role, as an investor one shall clearly identify why he wants to invest and what he wants to invest, before investing.

Diversification : Does the investment provide for diversification meaning variety of investments as sub parts of major investment.

User Mahozad
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