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investing

To invest is to allocate money in the expectation of some benefit in the future. In finance, the benefit from investment is called a return. The return may consist of a profit from the sale of property or an investment, or investment income including dividends, interest, rental income etc., or a combination of the two. The projected economic return is the appropriately discounted value of the future returns. Investors generally expect higher returns from riskier investments. When we make a low risk investment, the return is also generally low.

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