Which of these affect real investment value Check all that apply
Which of these affect real investment value? Check all that apply.
Every investment carry some degree of future risk .IF YOU ARE LOOKING FOR which of these affect real investment value check all that apply.
- Fees and expenses
- inflation
- Nominal interest rate
- Pretax returns
- Taxes
Which of these affect real investment value Check all that apply ?
The options that affect real investment value are fees and expenses, nominal interest rate, and taxes.
The real investment is understood as the money that is invested in tangible and productive assets such as machinery and factories in order to make profit, as opposed to investing in securities or other financial instruments.
Investment tends to increase in the stage of the business cycle known as boom, in which the economy is expanding.
Real investment value is seen as the actual value or amount of money a potential investor is willing to offer for a certain property. so above all factors Fees and expenses ,nominal interest rate and taxes all directly or indirectly affect real investment value.
What is real investment?
- In contrast to investing in securities or other financial instruments, real investment is defined as money put in productive and tangible assets such as factories and machinery in order to make a return.
- Investment tends to rise during the boom period of the business cycle when the economy is expanding.
Therefore, fees and expenses, nominal interest rates, and taxes are all factors that influence real investment value.
on other hand
Factors that affecting real investment are :
- Interest rates (the cost of borrowing)
- Economic growth (changes in demand)
- Confidence/expectations.
- Technological developments (productivity of capital)
- Availability of finance from banks.
- Others (depreciation, wage costs, inflation, government policy)
FAQS
Which of these affect real investment value Check all that apply?
which of these affect real investment value check all that apply.
Fees and expenses
inflation
Nominal interest rate
Pretax returns
Taxes