Investment climate The report “Investment climate in Russia” was prepared under my leadership by the Expert Institute jointly with Ernst&Young, High school Economics and Bureau economic analysis at the very end of 1999. I thought for a long time whether it was worth putting him in this

5 Investment climate Private investments that should be relied upon in restructuring the economy and ensuring economic growth, are extremely sensitive to the investment climate. Meanwhile, in Russia today it is very unfavorable. It seems

Investment process What does the concept of “investment process” include? I divide it into four main stages: 1. Preparing the project for consideration.2. Reviewing the project and making a decision on it.3. Implementation and ongoing monitoring of project implementation.4. Analysis

1. Leasing is:

* Long-term lease from 3 to 20 years or more

2. Franchising (as a non-traditional form of financing) exists in the form of:

* product franchising

* business franchising.

3. in case of project financing, foreign loans are attracted by the investment company:

* Without any guarantees from government agencies

4. Sources of project financing can be:

* Capital of large financial and industrial groups

5. The main sources of long-term financing include:

* Overdraft

* Bonds

6.depreciation deductions are intended only for:

* to compensate for retiring working capital

7. At its core, leasing (as a specific form of financing) is:

* Form of investment in fixed assets

8. Which of the following characteristics applies to venture financing:

* it consists of providing a certain amount of capital by an individual investor for the implementation of innovative real projects of the lowest risk in exchange for a corresponding share in the authorized capital or a certain block of shares

9.Profitability index or income per unit of cost PI (Profitability index) is defined as:

* the ratio of the present value of cash receipts to the amount of investment costs (reflects the economic effect of the investment project per one invested ruble).

10. Budgetary efficiency reflects:

financial implications for budgets at different levels

11..The budget effect is:

* difference between income respectively. budget and expenses for the implementation of a specific project

12. Default should be understood as:

failure to fulfill obligations to repay borrowed funds or pay interest on securities;

failure to pay principal or dues;

a sharp drop in the exchange rate of the national currency.

13. To outflows Money relate:

investments in fixed assets at all stages of the billing period;

compensation (at the end of the project) of current liabilities;

increase in working capital

14.The financial stability coefficient is defined as the ratio:

The enterprise's own funds and subsidies to borrowed funds

15. Liquidity ratios are applied:

To assess the ability of a business owner to fulfill its short-term obligations

16. Own capital is:

The value of a company's assets minus its liabilities.

17. Assessment of the social results of the project assumes:

*Compliance of the investment project with social norms and standards

18. The solvency coefficient is calculated as the ratio:

* Borrowed funds (in the sum of long-term and short-term debt) to equity

19.The inventory turnover ratio is defined as the ratio:

Sales revenue to average inventory value

20. The commercial efficiency of implementing IP for a subsectoral enterprise involves, first of all, taking into account:

*Financial consequences of the project implementation

21.Which of the following criteria for assessing the efficiency of capital investments are dynamic:

Internal rate of return (IRR)

Net Present Value (NPV)

Profitability Index (PI)

22. Alternative (opportunity) costs should be understood as:

*The price of replacing one good with another or the cost of production, measured in terms of lost..... production of another type of good, service, requiring similar costs of services

*Possible lost profits from using assets or resources for other purposes

23. Cash flow (as one of the investment evaluation methods) is:

* The difference between the amounts of receipts and cash payments of an organization for a certain period of time

Cash flow, the amount of cash received or paid out (cash flow)

24. The payback period of RR investments should be understood as:

* The period during which the initial investment will be fully repaid

25. Capitalized profit inherently represents:

* Retained portion of profits reinvested in production

26. The main indicator for justifying the federal and regional financial support measures provided for in the project is:

* budget effect

27. By internal return, or internal rate of return IRR (Intermal Rate of Return) we mean:

*discount factor at which the current present value of future cash flows on investments is equal to the costs of these investments

* the interest rate in the discount factor at which the net present value of the project is zero.

28. The position of both the company and the welfare of its owners will be more stable when accepting a project with NPV (net present value):

• less than or equal to 0

29.Current liquidity ratio (coverage ratio for short-term liabilities)

is defined as the relation:

* current assets to current liabilities

30.Accounting Rate of Return (ARR) is:

* the ratio of the average annual expected net profit to the average annual investment volume.

31.The most important areas of budget financing are:

security environment and ensuring environmental safety of the population;

development of the production and social sphere.

32. Among the forms of project financing, the most widespread financing is:

* with full right of recourse to the borrower

33. Public corporations are considered:

* corporations with dispersed share ownership.

34.The forms of project financing include:

financing without recourse to the borrower;

restricted financing;

financing with full recourse.

35. Sources of financing borrowed financial resources are:

bond loans;

bank loans;

budget loans.

36. Project financing of an investment project means:

financing of large investment projects;

financial resources of banks

37. Factoring is called:

* sale or discounting of receivables

38. Sources of venture financing can be:

financial investments of individual citizens

means large companies, including banks.

39. Budgetary financing of investment projects is usually carried out within the framework of:

federal investment program;

programs for competitive distribution of investment resources

40.The principles of using leasing include:

repayment of property

equality of the parties

contractual relationship

payment and urgency

indissolubility of the contract

41.Sources of long-term debt financing may be:

loans provided by government agencies, commercial banks and other non-state credit organizations;

mortgage loans with certain repayment guarantees;

medium- and long-term treasury obligations (bonds) with a maturity of more than one year

42. Project financing with full recourse of the borrower is used in the following cases:

43. An enterprise acquires a share of another enterprise for 45,000 rubles. At the same time, the current market price is 55,000 rubles, and the dividend is 5,000 rubles. Determine the profitability of this security for the purchasing enterprise:

44. An effective investment portfolio is:

diversified portfolio with a minimal level of risk;

diversified portfolio with maximum expected return.

45. Interest income on zero-coupon bonds:

not paid at all.

46.Which security gives the owner the right to participate in the management of the enterprise that issued this security:

47.The purpose of investing in securities is

* income generation

48. 100 shares were purchased at 1 ruble. They were resold six months later for 2 rubles. Dividends were received and 5 kopecks per share. Determine the profitability (in annual%):

49.Which of the following securities are classified as financial papers with a fixed payment:

bond;

certificate of deposit;

50. The securities market (futures market) includes such markets as:

• primary and secondary;

  derivative securities;

  exchange and over-the-counter;

  urgent (forward, futures, option)

51. Derivative securities d................... include:

52. With zero growth in dividends, the value of a share (simple and preferred) is determined as the ratio:

cash dividend to the expected rate of return

53.What method can be used to determine the effectiveness of investments in securities:

*method of expert assessments.

54.The capital market is:

* financial market, where purchase and sale operations of medium-term and long-term financial assets or long-term capital and debt obligations are traded.

56. Real investments include:

investments in fixed assets;

investments in intangible assets

57.Subjects investment activities are:

customers;

investors;

users of capital investment objects

58. Trade and other loans are essentially:

*represent a type of investment

59. Investments can be defined as:

* current expenditures of cash or other funds in anticipation of receiving future benefits.

60. In accordance with the laws of the Russian Federation, a foreign investor has the right:

* take part in the privatization of state and municipal property;

acquire ownership rights to land and other natural resources;

lease land at the auction.

61. Investment risks, depending on the level, can be:

low-risk and medium-risk;

risk-free and high-risk

62. Real assets include:

* assets that actually exist;

balances of fixed assets (less depreciation), work-in-process inventories, low-value and quickly sold inventory.

63.By investment objects there are:

real;

financial.

64 Shares investment funds can be:

* Interval

Open

Closed

65.The investment horizon should be understood as:

Planned expiration date of the investment

66. A securities portfolio focused on risk diversification is:

Balanced portfolio

Specialized Portfolio

Income Portfolio

Growth Portfolio

67. Factor influencing the profitability of a stock:

Prestige of the issuing company

68. Debt securities include:

• Bonds

69. Between the number of securities in the portfolio and the standard deviation there is:

Direct dependency

There is no dependency

Inverse relationship

70. Technical analysis should be understood as:

* Analysis of the dynamics of profitability of sales over the long term

71.The CAPM model essentially represents:

* A mathematical model that takes into account the interdependence of financial risk and expected income

72. What indicator is used to assess the effectiveness of investments in securities:

*Net present value

73.Which securities have greater risk:

• Treasuries

74.What is a perpetual security?

* Bond

75.Arbitrage theory of pricing:

* Stephen Ross

76.Financial assets as an object of investment financing include:

* Banking instruments that are not subject to free purchase and sale

* Freely tradable securities

77.The investment environment should be understood as:

* Set of economic, political, social, legal, technological and other conditions

78.Financial investments are:

investing in various financial assets (securities and bank accounts);

acquisition of assets such as gold, securities, foreign currency, art objects, etc.

79. The following are more protected from the consequences of inflationary growth:

* Real investment

The investment market includes:

* Real estate market and stock market

80..The concept of “investment” can be considered as:

expenditures of funds aimed at the reproduction of capital, its formation and expansion;

investing in securities for a relatively long period of time;

part of the total expenses aimed at new means of production, increase in inventory, investments in financial assets

81.According to the methodology of the Russian State Committee for Foreign Investments are divided into:

* direct, portfolio and others.

82. Development and implementation of an investment project includes (phases):

83. Indicate which of the following statements are true: “at the second stage of implementation of the investment project..”:

capital investments are made;

contracts are concluded with suppliers.

84..By functional basis, the objectives of investment project management are divided into:

* technical, organizational, social, economic.

52.According to investment elements, investments are divided into:

material;

intangible

85. Management of the implementation of investment projects at an enterprise begins with the development of their plans, the initial stage of which is:

* work breakdown structure.

86. Investments in the expansion of existing production involve:

Replenishment of the staff headquarters;

Expanding the purchase of raw materials and supplies from traditional suppliers

87.The development and implementation of the investment project is carried out in:

4 stages.

88. The situation in which an investor is forced to implement a project is typical for:

* Investments made in accordance with the requirements of the law.

89.Which of the following investments are considered low-risk investments:

*Investments in risky R&D

Investments in the renewal of fixed capital

Investments in reducing operating costs

* Investments in new construction

90.”The functional “structure of investment project management is based on:

* differentiation of managerial work by individual functions.

91.By type cash income investment projects are divided into:

ordinary;

extraordinary.

92.The advanced project management scheme assumes that:

*the director (manager) is responsible for the project within the fixed estimated cost.

93. All mathematical models used in the management of investment projects are divided into:

deterministic and stochastic.

94.An investment proposal is being developed for:

*potential investor.

95 Which of the following statements is not true: “For a design and construction contract based on an agreement on the construction of a facility, when expenses are reimbursed from the actual cost and the guaranteed amount of profit, the contract price is determined based on:

* costs according to the estimate in basic prices”;

96.Which of the following characteristics relate to the classification of investments by purpose:

solving social problems;

compliance with legal requirements

97. Real investments are _:

investments in fixed assets;

investments in intangible assets

98. Sources of financing of borrowed financial capital resources:

bank loans

funds from insurance cases

bond loans

budget loans

99. A venture investor invests in:

* in the form of investments in authorized capital for the purpose of generating income and obtaining the right to participate in the management of the enterprise;

* by investing in valuable books of the enterprise;

* by acquiring a share of the ownership of the enterprise without seeking to take control of financial enterprises.

100. As the number of enterprises operating in the franchising system grows:

the number of jobs increases;

will increase cash receipts to budgets of different levels;

increase capital productivity;

unemployment will decrease.

101. Sources of financing own financial resources are:

* depreciation deductions;

* budget loans;

* profit;

* funds paid by insurance companies.

102. Select indicators related to assessing the social consequences of the project:

change in the number of jobs in the region;

changing the structure of production personnel;

the ratio of financial costs and results ensuring the required rate of return of the future enterprise in the field of project implementation.

Saving free time.

103. The main indicators for ensuring the federal regional financial support measures provided for in the project are:

* commercial efficiency;

budget effect;

social efficiency;

financial viability of the project.

104.The inventory turnover ratio is defined as the ratio:

average (for the period) cost of inventories to sales revenue;

net profit to the average ((for the period) cost of inventories;

sales revenue to the average (for the period) cost of capital;

the cost of goods and materials to the gross profit of the enterprise.

105. The beta coefficient reflects:

sensitivity of a security's return to a systematic (market) factor;

a stock return model that takes into account the effects of systematic and non-systematic risk factors;

totality investment opportunities specific enterprise;

level of profitability.

106.Income from financial assets can be obtained through:

payments promised by the issuer;

increase in the value of invested funds;

payments promised by the issuer and the increase in the value of invested funds.

107.An international organization that evaluates the attractiveness of securities:

international union of brokers;

New York Stock Exchange.

108.Which securities have greater risk:

• treasury bills;

109. Real investments are registered as follows:

forecast;

investment project;

• investment plan.

110.Which of the following investments are considered low-risk investments:

investments in current .......;

investments in new construction;

investment in R&D;

investing in bonds….....

111.Indicate which of the investments are considered property:

investments in antiques, works of art;

investments in real assets;

invention patents;

investments in financial assets.

112. Currently in Russia, direct investments in a specific enterprise made in the amount of

not less than 20%;

not less than 10%;

not less than 5%.

113. Capital-forming investments are considered to be investments made in:

products of scientific and information activities;

banking instruments;

production facilities related to the main activities of the enterprise, reproduction of its fixed assets and working capital;

investments in securities.

114. Real assets include:\

• assets that actually exist;

  education received in college;

  remaining balance...

  business reputation (goodwill)

Day traders and long-term investors have many differences, resulting in different time horizons (investment horizons). Technical analysis may simultaneously tell the first of them to buy, and the second to sell, but what both groups have in common is that they act. In order to stick to their strategies, whether they are long-term or short-term, each of them needs to take appropriate actions as a result of the analysis. The last step is to enter into trading.  

Investment planning horizon  

At the same time, the practical significance of errors made in the calculations of individual project indicators largely depends on the moment of their occurrence; errors in the levels of individual indicators related to the distant future are several times less significant than miscalculations in the cost levels of the coming years. Therefore, only very large miscalculations in assessing the parameters of the distant future actually distort the assessment of the effectiveness of the project as a whole. Taking into account the above, design errors that appear in the very distant future play a really large role only in that part that relates to the largest miscalculations of a strategic nature. It is precisely to prevent such strategic miscalculations that the development of long-term investment forecasts, programs and projects. In general, extending the horizons for calculating project indicators makes sense only to the extent that the achieved project refinements exceed the likely consequences of growing forecast errors. In particular, as a rule, it makes no sense to develop a project for the development of a mining enterprise for the entire period of its future service, usually exceeding 25 - 30 years. It is more realistic in these cases to limit the calculations to the period of mining of one or two first horizons.  

The particular importance of the correct investment policy of mining companies is determined by the fact that the main workplaces of the enterprises - the faces - move across the territory of the mine field, which requires regular preparation of new horizons, floors and blocks, carried out through investments in maintaining the capacity of the mining enterprise.  

In these conditions, it is undoubtedly relevant to expand the horizons of analysis of the investment component of the region’s economic development through a resource approach to assessing static and dynamic investment parameters, the implementation of which has hitherto been hampered by the lack of methodological tools for qualitative and quantitative identification of the category “investment resources.”  

Relationships in the field of planning permeate all investment activities both vertically and horizontally (relationships with related companies). These relationships are the basis for the effective functioning of production, technological, economic ties and play a significant role in capital construction and especially in the conditions of the complete block method of creating production facilities, characterized by a variety of conditions and features that affect economic efficiency.  

The functions of the “planning” block are mainly to ensure coordination of all participants in the investment process vertically and horizontally, and the “economic stimulation” block is to create the economic interest of these participants.  

The calculation horizon is quarterly in the first year of implementation of the investment project, then annual.  

The above can be illustrated by the diagram below (90) In this diagram, the amount of investment (or savings) I is plotted vertically, and the interest rate r is plotted horizontally. XIX 1 is the first position of the investment demand curve, X2X 2 is the second position of this curve. Curve Y1 characterizes the amounts saved from income at different levels of interest rates; curves Y2, Y3, etc. are the same for income Y2, Y3, etc. Let us assume that curve Y1 is one of the family of Y curves, compatible with investment demand curve XIX 1 and interest rate rl. Now let the investment demand curve shift from position XIX 1 to position X2X 2 then, generally speaking, the amount of income will change. But the above diagram does not contain enough data to show us what this new value will be, and without knowing what position the Y curve will take, we cannot know at what point the new investment demand curve will intersect it. If we introduce into the analysis the state of liquidity preference and the amount of money and learn from them that the interest rate is equal to, say, R2, then the situation as a whole will be completely determined.  

Regardless of the general forecast horizon used, most investment organizations prepare income and dividend forecasts for the fiscal year and review them quarterly. So if the 12-month reporting period shows no fundamental change, the intrinsic value will be calculated on an annualized basis.  

What else could have served as additional reasons for avoiding the collapse predicted in October 1997 in the US market? One of these factors could be the behavior of organized private investors. The US population owns the majority of the mutual fund industry, with a total capital of 2.626 trillion or 74.2% of the 3.539 trillion in mutual fund assets (as of year-end 1996). While banks and individual investors acting as trustees, guardians or managers, as well as other investor organizations own the remaining 913 billion or 25.8%. As shown in Fig. 104, the pattern of stock purchases by the public has gradually changed over the past 10 years, leaning more and more towards mutual funds. The Company's analysis, which spans more than 50 years, includes 14 major market declines and several major stock sell-offs. This analysis finds no historical evidence of massive divestitures of mutual fund assets during stock market declines. SITA. This analysis is consistent with the results of shareholder surveys and suggests that mutual fund shareholders have longer-term investment horizons and a general perception of risk.  

Direct consequence 2: the probability of winning increases with increasing investment horizon.  

Our analysis focuses on three retracement levels (38.2, 50.0, and 61.8%, all derived directly from the Fibonacci summation series and the Fibonacci FI ratio). To decide which of these three ratios is most suitable for working with the recovery level, you need to take into account the volatility of the product, the investor's attitude to risk, investment strategy, base time horizon and amount in the managed account available for investment. Much depends on what kind of charts are created and studied - daily or weekly.  

Modeling portfolios for various combinations of stocks and bonds always shows that placing a larger portion of funds in stocks produces higher returns, especially over longer periods of time. If you are an investor with a long investment horizon, say more than 10 years, and you are not interested in current returns, could you justify having some bonds in your portfolio  

The assessment of upcoming costs and results when determining the effectiveness of an investment project is carried out within the calculation period, the duration of which (calculation horizon) is taken into account  

By analyzing the totality of procedural relations horizontally and vertically, it is possible to obtain a matrix of an array of legislative nature that regulates this area of ​​the investment process in market conditions(Table 4.5).  

The impact of uncertainty is aggravated by the rapid pace of scientific and technological progress. If earlier the time frame of the first stages of scientific and technological progress generally went beyond the horizons of even long-term planning and did not require particularly large investments, now the situation has changed; the time frame has been reduced, investment requirements  

An alternative to this approach is to assume that the final year cash flows ( last year investment horizon) will then continue to grow at a constant rate indefinitely. If this assumption is made, the terminal value of the asset will be  

Along with the considered principles of standardization of specific groups and individual norms and standards, it is possible to formulate the most general principles relating to almost all subblocks of the system of norms and standards. The system should be formed on the basis of a unified complex of modular products and devices and a nomenclature list of enterprises in a complete modular design, be dependent on the degree of factory readiness of objects and the level of scientific and technological progress in asset-creating industries and, in this regard, be periodically updated and taken into account

The investment horizon is the time interval during which the investor plans to achieve his goals.

This definition does not contain specifics, but at the same time it allows us to identify two main factors that have a direct impact on the investment horizon. It's about timing and achieving your investment goal.

Various sources provide excellent approaches to defining this concept. In particular, the investment horizon can be perceived as the period of time during which the investor will own the acquired asset or investment object.

In addition, it can be understood as the time during which investments will be made directly.

It must be remembered that the ideal value of the duration of the investment horizon, which would be equally suitable for different investors, does not exist in nature. In each specific case, its duration will vary. It will always depend on several variable factors.

Main Factors

The duration of the investment horizon will be determined by:

• investor's starting resources;
• specific purpose of investment;
• acceptable level of risk;
• amount of time.

At the investment planning stage, there is always an assessment and planning of real initial resources that will be invested in the implementation of the selected project. In other words, the initial amount of money to be invested plays a huge role.

The purpose of investment activity is to make a profit. At the same time, the tasks of all investors are different. One wants to cover the expected level of inflation in the country in a year. The second seeks to double the invested capital. And the third one dreams of earning a certain amount, for example, a million American dollars or British pounds sterling.

Depending on the chosen investment object, the level of risk will vary greatly. In particular, investing in government bonds is low-risk. Investments in special programs microfinance organizations at 25–40% per annum, on the contrary, will be associated with increased level risk.

The time factor is also incredibly important. Some investors are ready to allocate 3 years for the implementation of the task, while others cannot wait more than 6 months. In such a situation, the choice financial instruments investment will be radically different.

The specific existing combination of all these factors will ultimately form a certain investment horizon.

Horizon planning methods

The correct sequence of actions has long been invented, which allows any, even a novice and inexperienced investor, to correctly plan the optimal investment strategy, implemented within the boundaries of the real investment horizon.

First of all, you need to set yourself a clear and unambiguous goal, the achievement of which investments will contribute. Then the investor determines the maximum acceptable level of risk for himself. Finally, you need to set the time interval within which the selected goal must be achieved.

Having determined for himself all the above-mentioned variables, the investor can proceed to obtain information about the current state financial markets. It is necessary to select and analyze everything possible types investments. First of all, you should pay attention to their profitability and riskiness. After all these actions are completed, it will be extremely easy to understand which of the existing investment opportunities will allow you to achieve the previously formulated goal.

This topic is covered more fully in the materials of the publication “Investment Planning”.

An immutable financial axiom has been empirically derived: the longer the investment horizon, the greater the income received and the less pronounced the associated risks.

Conclusion

Correctly determining the investment horizon is an extremely important task for every investor.

Within the framework of a long investment horizon, it is the shares of companies that are considered the most profitable option investments. This is due to the fact that in long term compared to cash and other securities with fixed interest rate, they are able to provide their owner with much greater profitability.

On the contrary, within a short investment horizon, shares are a much more dangerous type of financial asset, since in this case they will have an increased level of volatility.