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    The document discusses different types of investments that can be included in an investment portfolio including stocks, bonds, real estate, and derivatives. It also discusses expected returns and risks associated with different investments and how expected returns change based on economic conditions. The document also discusses mutual funds as an investment method that provides opportunities for private investors to enter capital markets.

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    The document discusses different types of investments that can be included in an investment portfolio including stocks, bonds, real estate, and derivatives. It also discusses expected returns and risks associated with different investments and how expected returns change based on economic conditions. The document also discusses mutual funds as an investment method that provides opportunities for private investors to enter capital markets.

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    The document discusses different types of investments that can be included in an investment portfolio including stocks, bonds, real estate, and derivatives. It also discusses expected returns and risks associated with different investments and how expected returns change based on economic conditions. The document also discusses mutual funds as an investment method that provides opportunities for private investors to enter capital markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views1 page

    15

    Uploaded by

    WSLee
    The document discusses different types of investments that can be included in an investment portfolio including stocks, bonds, real estate, and derivatives. It also discusses expected returns and risks associated with different investments and how expected returns change based on economic conditions. The document also discusses mutual funds as an investment method that provides opportunities for private investors to enter capital markets.

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    Investors can incorporate many assets into their investment portfolio, including stocks, bonds,

    fixed deposits, derivatives, and gold real estate. Each of these investments has common

    characteristics, such as potential returns and risks that must be assumed. Since the future is

    uncertain and higher returns are associated with taking more risks, it is necessary to decide

    how much risk to take (Arora & Marwaha, 2014). There is growing evidence that bond and

    stock returns are predictable. To some people, predictability means that the market is

    inefficient. Others believe it is the result of a reasonable change in expected return. Expected

    returns for common stock and long-term debt include fixed term or maturity premiums with

    well-defined business cycle patterns. Expected returns also include the risk premium

    associated with the long-term aspects of the business terms. Stocks are larger than bonds,

    while long-term low-bond premiums are higher than high-grade bonds. The general message

    is that when the economy is good, the expected return is low, and when the situation is weak,

    the expected return is high (Fama & French, 1998).

    In addition to direct equity investment, risk averse individuals consider mutual funds a more
    acceptable investment method. Despite the huge financial resources and lack of expertise in
    running the stock market, it has become an increasingly popular investment tool for
    Malaysians as it opens up opportunities for private investors to enter the capital markets
    (Mahdzan, Zainudin, & Yoong, 2020). Nurasyikin Jamaludin (2013) mentioned that in
    Malaysia, mutual fund is known as unit trust and it is an investment tool that allows investors
    to concentrate resources on investment portfolios. The portfolio includes asset classes such as
    cash, real estate, deposits, commodities, stocks and bonds. Zahariah Sahudin (2015) states
    that the performance

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