Question

Which is not considered as an element of investment opportunities
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Answer 1

Answer:

A part of income which is not spent o consumption and saved for the use of capital formation in a year is called investment.

There are two elements of determining the investment

(1) The rate of profit which is also known as marginal efficiency of capital.

(2) The rate of interest

Answer 2

Element of investment opportunities

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Explanation:

• Investment is a part of income which is not spent on consumption, saved for the use of capital formation in a year. There are three factors which are considered as elements of investment-

1. Reward
2. Risk and return
3. Time  

• The return is referred as reward from the investment, which includes both current income and capital gains or losses which raise by the increase or decrease of an investment.
• It is important to be noted that the as greater the variability or dispersion in the possible outcome, the greater will be the risk.
• Time is the third element of investment. As conditions change with respect to time moves on and investors should re-evaluate expected return for each investment.