Respuesta :
Answer:
opportunity costs
risk
rate of return
liquidity
Explanation:
In addition to risk, rate of return, and liquidity, it is also important to consider opportunity cost. An opportunity cost is the difference between a chosen investment and one that is passed up. For example, let's say you invest in a stock and it returns only 2 percent over the year. When you put your money in the stock, you gave up the opportunity of investing in something else, such as a savings account that pays 6 percent interest. The difference between the 2 percent you earned and the 6 percent you could have earned is 4 percent. This is your opportunity cost.
You can think of opportunity cost like this: What is the next, best alternative you gave up when you made a choice?
Here's another example. Let's say you decide to spend $1,000 you earned working at your uncle's pizza place. Instead of spending, you could have invested the money in a certain stock. Let's say the stock did well, and after six months the stock was worth $1,158. Because you no longer have the original $1,000, or the money it could have earned, the opportunity cost is the full amount, $1,158.
When investing, therefore, you should consider the alternate investments that you're giving up. In other words, consider opportunity costs.
When creating a financial plan, it's important to know which investments are high risk or low risk and which investments have a higher rate of return. Drag and drop the investments into the correct section of the pyramid.
