Financial Investment Opportunities

1842 Words8 Pages
Financial Investment Opportunities Name of Student Name of Institution Financial Investment Opportunities Introduction Financial investment opportunities rise in different ways. This means that an individual is required to direct funds into an activity that is beneficial. Interestingly, most investments help individuals get an earning. Therefore, they could receive an income on a monthly or yearly basis. These investments can be made with the help of a financial advisor. This is a person that helps an investor make the risk investments. A financial advisor keeps the financial records of the client. People can make their investment into different organizations. They can be private or government owned. However, the government has the mandate to protect the right of investors especially from exploitation. Logically, an investment depends on the person making the investment. This is because the possibility of a risk is dependent on the investor. This means that investors make a choice of the kind of investment to venture into. In summary, financial investment opportunities allow people to channel their finances to other activities that are beneficial. Task 1 1. Explain the different types of individual risk which you would assess while evaluating the suitability of investments? The suitability of an investment comes with the risk that an individual investor is likely to encounter. Standard deviation is one of the risks that an individual is likely to go through. This is the relationship between the returns and risks (McNeil et al.., 2005). It is measured through the fluctuation of the investment over a period of time. As a result, the rate of returns is affected either upwards or downwards. This means that a person could either have made a gain or loss. Arguably, investment with a high rate of volatility is more likely

More about Financial Investment Opportunities

Open Document