Answer :

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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