LSP FB B2 - Unit 4

Benchmark

A standard used to compare the performance of an investment or portfolio.

Capital preservation

A strategy focused on protecting investment value by minimizing losses.

Conservative investor

Someone who prefers low-risk investments to avoid losses.

Debt security

A financial asset, like bonds, representing borrowed money that must be repaid with interest.

Diversification

Spreading investments across different assets to reduce risk.

Evaluation

The process of assessing an investment's value, performance, or risk.

Income generation

Earning money through investments, such as dividends, interest, or rent.

Interest-earning

An investment or account that gains money over time through interest payments.

Investment goal

A financial target set when investing, such as wealth growth or retirement savings.

Low-risk

An investment with a small chance of losing money.

Multiple

A ratio comparing an investment's value to its earnings, revenue, or another factor.

Portfolio

A collection of different investments owned by an individual or institution.

Prioritize

To focus on or give more importance to certain financial goals or investments.

Profit-earning

An investment or business that generates financial gains.

Profitability

The ability of an investment or business to generate profits.

Rate of return (ROR)

The percentage of profit or loss on an investment over a period.

Real estate

Property such as land, houses, or buildings used as an investment.

Rental

Income earned from leasing out property or assets.

Return expectation

The anticipated profit from an investment.

Risk management

Strategies used to minimize financial losses in investments.

Risk tolerance

The level of investment risk an investor is willing to accept.

Risk-adjusted

A measure of investment performance that accounts for the level of risk taken.

Time horizon

The length of time an investor plans to hold an investment.

Treasury bill

A short-term, low-risk government debt security.

Volatile

An investment with frequent and unpredictable price changes.

Well-positioned

An investment or portfolio structured to take advantage of opportunities or manage risks effectively.