investment model

The investment model is a framework used to understand how people make decisions about investing their money. It considers factors like expected returns, risk tolerance, and personal goals. Essentially, it helps investors evaluate potential investments by weighing the possible profits against the risks involved. The model emphasizes the importance of informed decision-making, where individuals gather information and assess their financial situation before investing. By doing so, they can choose investments that align with their objectives and comfort with risk, ultimately aiming for a balance between safety and growth in their financial portfolios.