The essence of risks in the process of making investment decisions

Abstract

Real investments are divided into three main areas: business investment in fixed capital,
housing and changes in inventories (investments in material assets). Investments have the
following essential features: in all cases, the purpose of the investment – receiving certain
benefits (profit, income, economic benefits, another useful effect); one who invests, ready for
these benefits, abandon the current consumption of certain resources; as benefits expected to
obtain in the future, the investment process takes place in conditions of risk and uncertainty