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What are complementary investments?
Complementary investments are investments which raise any potential profits from the use of a new technology. An increase of any investment A leads to an increase in productivity of investment B. Take the Hoover dam as an example, not only was the dam built for technical/environmental reasons ( investments A ), when completed it was a large tourist attraction which people wanted to come visit ( investment B)
How is variance used to measure risk?
In finance, risk of investments may be measured by calculating the variance and standard deviation of the distribution of returns on those investments. Variance measures how far in either direction the amount of the returns may deviate from the mean.
Which of these investments would you expect to have the highest rate for the next 20 years?
U S Treasury bill
What is meant by the term portfolio investment?
Portfolio investment refers to investments in foreign countries that are withdrawable at short notice, such as investment in foreign stocks and bonds.
What is the use of finding the mean of a group of numbers?
That has a lot of applications, related to finding a general tendency, calculating or estimating the mathematical expectation (important for investments), etc.
