What are the two important aspects of investment decisions?

[Jasz]

The two important aspects of investment decisions are return and risk. The return is the profit you make if you choose to invest in something, while the risk is the chance that you can lose money.

The return on an investment is measured by its rate of return. It shows how much your money will gain or lose with each dollar invested. If your investment earns 5% a year, each dollar you put into it will earn $0.05 in interest income. You can also calculate what your initial investment would have been worth after a particular period of time, such as one year or three years from now, by measuring how much more or less than 1% per year it earned for each year of the investment period.

The risk involves potential losses that could occur from investing in certain investments. For example, if you buy stocks in a company that goes out of business, you may lose all your money. If you invest too much in a single stock and then it falls in value due to bad news about its company's performance or because there was an economic slowdown, then your entire investment could be at risk if it falls below a certain level (known as “breaking even”).

 

[Axis]

When investing you need to know the guy of venture business you are investing your money in because this will save you the pandemic of you losing your money to the win. I want to help you know the kind of business now investing your money in is making proper enquiries and investigations. This method will help you no the informations and knowledge of what you are interesting your money into.. and also when investing into a business or anything at all you need to calculate the amount used invest in the business and also the income or profit you will get from your investment. This will help you because you will know whether your investment was fruitful or it was just wasting of money. For example if you are to invest 200,000 dollars in a business do you need to have in mind that the income and profit you are to gain would be more than the amount used in investing into the business. These are some of the aspects a person need to note when investing in a business