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According To 2nd Lecture He Addresses About The Significance of Investment
According To 2nd Lecture He Addresses About The Significance of Investment
Investment risk
Investment risk can be defined as the probability or likelihood of
occurrence of losses relative to the expected return on any particular
investment.stating simply, it is a measure of the level of uncertainty of
achieving the returns as per the expectations of the investor. It is the
extent of unexpected results to be realized.
risk is an important component in assessment of the prospects of an
investment. Most investors while making an investment consider less
risk as favorable. The lesser the investment risk, more lucrative is the
investment. However, the thumb rule is the higher the risk, the better
the return.
What is PPP
PPP is an economic theory that compares different countries'
currencies through a "basket of goods" approach. According to this
concept, two currencies are in equilibrium—known as the currencies
being at par—when a basket of goods is priced the same in both
countries, taking into account the exchange rates.
PPP advantages:
Ensure the necessary investments into public sector and more effective public resources
management;
Mostly investment projects are implemented in due terms and do not impose unforeseen
public sectors extra expenditures;
Private sector expertise and experience are utilized in PPP projects implementation;
Appropriate PPP project risks allocation enables to reduce the risk management
expenditures;
In many cases assets designed under PPP agreements could be classified off the public
sector balance sheet.