QUESTION TWO (15 marks) For most of your life, you will be earning and spending money. Rarely, though, will your current
Posted: Wed Jul 06, 2022 6:39 pm
QUESTION TWO (15 marks)
For most of your life, you will be earning and spending money.Rarely, though, will your current money income exactly balance withyour consumption desires. Sometimes, you may have more money thanyou want to spend and at other times you may want to purchase morethan you can afford based on your current income. These imbalanceswill lead you either to borrow or to save to maximize the long-runbenefits from your income. What you do with the savings to makethem increase over time is investment.
i. Why do people invest? [3 marks]
ii. Discuss three investment opportunities available in Kenya [6marks]
iii. Why do investors invest in a portfolio instead of investingin one profitable security? [3 marks]
iv. State the importance of investment analysis to an investor[3 marks]
For most of your life, you will be earning and spending money.Rarely, though, will your current money income exactly balance withyour consumption desires. Sometimes, you may have more money thanyou want to spend and at other times you may want to purchase morethan you can afford based on your current income. These imbalanceswill lead you either to borrow or to save to maximize the long-runbenefits from your income. What you do with the savings to makethem increase over time is investment.
i. Why do people invest? [3 marks]
ii. Discuss three investment opportunities available in Kenya [6marks]
iii. Why do investors invest in a portfolio instead of investingin one profitable security? [3 marks]
iv. State the importance of investment analysis to an investor[3 marks]