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Set Investment Policy Adage Insight: "If you don’t know where you are going, any road will do." Purpose: Establishes a strategic plan that guides all investment efforts. Components: Determination of Objectives: Identifying risk and return goals. Invest...

Investment Alternatives: These are the various financial instruments or assets available to investors for deploying their capital. They include options like stocks, bonds, real estate, commodities, and alternative investments such as private equity or cryptocu...

1. Real Assets Definition: Tangible assets that have intrinsic value due to their physical properties. They are often used for production, consumption, or as stores of value. Examples: Real Estate: Land, buildings, and properties that can generate income ...

Investment attributes are the key characteristics or features that help investors evaluate and compare different investment options. Understanding these attributes is crucial for making informed investment decisions. 1. Risk Definition: The possibility of l...

Investment Scenario Investing involves allocating funds to assets with the goal of earning income or capital appreciation. It implies sacrificing current consumption in anticipation of future returns. The essence of investment can be distilled into three key a...

The E-I-C (Economy-Industry-Company) framework provides a structured approach to analyze investment opportunities by examining economic trends, industry dynamics, and company-specific factors. This comprehensive analysis helps investors to make informed decisi...

Understanding different types of financial charts is crucial for analyzing market trends, making investment decisions, and tracking the performance of various financial instruments. Here, we explain four fundamental chart types: Line Chart, Bar Chart, Point an...

Chart patterns are crucial tools in technical analysis, helping traders and investors to anticipate future price movements based on historical formations. Here's an expanded look at several key patterns: V Formation The V Formation signifies a rapid reversal i...

Oscillators are technical analysis tools that oscillate between two extremes. They are used to identify overbought or oversold conditions, signal potential trend reversals, and gauge momentum. Moving Average Convergence/Divergence (MACD) MACD is a trend-follow...

In the context of financial markets, support and resistance levels represent key concepts that traders and investors use to identify potential turning points on price charts for a stock, commodity, currency, or any other tradable instrument. Support Level A s...

The Exponential Moving Average (EMA) is a type of weighted moving average that gives more significance to the most recent prices, making it more responsive to new information. Unlike simple moving averages (SMAs), EMAs are designed to react more quickly to pri...

Risk Risk in finance refers to the uncertainty regarding the future returns on an investment. It represents the potential for an investment's actual returns to deviate from the expected returns. Risk is inherent in all types of investments and can manifest in ...

When investing in a financial asset, the primary goal is to earn a return on that investment. The return represents the gain or loss made on the investment relative to the amount initially invested. Understanding how to compute the return helps investors evalu...

Total Risk in an investment context refers to the overall uncertainty or variability of returns that an investor may experience. It encompasses all the potential sources of risk that could affect the returns on an investment. Understanding total risk is crucia...

Systematic Risk (also known as market risk or non-diversifiable risk) is the risk that affects the entire market or a large segment of the market. It is driven by factors that influence the overall economy or financial markets, such as economic recessions, int...

Risk is quantified by the variability of returns, through assigning probabilities and calculating the expected values of returns. The standard deviation, which represents the spread of a set of numbers, is calculated as the square root of the average of the sq...

Beta is a key financial metric used to measure the sensitivity of a stock's return in relation to the overall market return. It is a component of the Capital Asset Pricing Model (CAPM), which is used to determine the expected return of an asset based on its ri...

Interactive Risk through Covariance When two securities are held in a portfolio, the risk involved is measured by the Covariance, also known as Interactive risk. Covariance between securities Covariance measures how two securities move in relation to each othe...

Valuation is the process of determining the current worth of an asset or a company. It is a key concept in finance that helps investors, business owners, and financial professionals make informed decisions about buying, selling, or holding various types of inv...

Value is a fundamental concept in finance, economics, and accounting that refers to the worth of an asset. It is often determined by what a willing and able buyer would pay to a willing and able seller. Below, we explore the various types of value and outline ...