Factors to be considered for Investment decision
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Discuss a real world decision that you made before taking this class for which you could have analyzed (like a capital budgeting decision or security investment) but didn't. Explain (you do not have to include numbers) how you might now go about setting up your "investment decision."
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The answer contains the factors that must be considered while making investment decisions.
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Last year, I purchased 100 shares of IBM Limited for $2000. I purchased the shares simply on the basis of the name I heard which is very popular. However, I did not take into following criteria:
1. I did not consider whether the price I had paid was reasonable because I paid more than the face value of the share. I did not consider the timing of the purchase, i.e. when I have to purchase. I have to purchase the shares at the time of decreasing trends in share price and not at the time of increasing trends in the share price.
2. I did not consider the return on investment of other ...
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