Finance report Essay Example | Topics and Well Written Essays - 4750 words

Finance report - Essay Example We divided its capital into four equal portions of QR 250,000 each to invest in each of the four investment platforms available. As such, we invest QR 250,000 in the Qatar Stocks Exchange, which is the principle stock market of Qatar. It invests another QR 250,000 in Qatar National Banks as bank deposits. It then invests the third portion of their capital, another QR 250,000 in gold and other metals. Some of these gold businesses are international and not available within the country. Furthermore, it invests the last portion of their quarter million in Forex markets, mainly dealing with currencies exchange with the Qatar Riyal. We has an investment philosophy that is of a risk taking capacity, which means that we will easily go for the high risk investments because of the high returns associated with these investments. Furthermore, we is aware that these high-risk investments may either lead to the loss of all the invested capital, or lead to a significant profit way beyond their imagination. We practices on the â€Å"risk-return tradeoff† investment strategy. This investment strategy operates on the principle that the potential of returns raises with an increase I the risk of investment. As such, lower levels of uncertainty, such as loss risk investments, have a high likelihood of bringing in low potential returns on the other hand, high levels of uncertainty, such as in high-risk investments, there is a high likelihood that the investments will yield high potential returns. Consequently, in accordance with the concept of â€Å"risk-return trade off† in business investments, money invested by an investor can render higher profits only if it is subject of a high possibility of losses. This model of business investment strategy requires traders to be always aware of their personal risk tolerance whenever they make choices of their investment portfolios owing to the