This article is about investment in finance. This article needs additional net capital expenditure investopedia forex for verification.
In finance, the benefit from investment is called a return. The return may consist of capital gains or investment income, including dividends, interest, rental income etc. Investors generally expect higher returns from riskier investments. Investors, particularly novices, are often advised to adopt a particular investment strategy and diversify their portfolio.
Diversification has the statistical effect of reducing overall risk. Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk. Speculation involves a level of risk which is greater than most investors would generally consider justified by the expected return. An alternative characterization of speculation is its short-term, opportunistic nature. Investors famous for their success include Warren Buffett.