Final answer:
Investment involves putting money into something with the expectation of a return in the future, considering factors like rate of return and risk/return relationship.
Explanation:
Investment is the act of putting money into something with the expectation of gaining more money or a return in the future. It involves using resources or savings in projects that are anticipated to increase future income.
Examples of investments include buying stocks, bonds, real estate, or starting a business. Investors analyze the rate of return (RoR) to assess how profitable an investment is expected to be over time.
Understanding the risk/return relationship is crucial, as different types of investments come with varying levels of risk and potential returns.
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