Abstract
Assessment on Effective Investment during Inflationary Period in Ethiopia
Highlights
One of the greatest problems facing Ethiopian economy today is inflation which is persistently a complex, economic and social problem of the economy
A situation where the value of money continues to depreciate in terms of value, there is the tendency for rising prices for available goods and services generally and such situation is being referred to as inflation
Inflation in the country has become a threat to the Ethiopian economy to investment and development
Summary
One of the greatest problems facing Ethiopian economy today is inflation which is persistently a complex, economic and social problem of the economy. Despite record low-interest rates, firms were unable to borrow for investment – despite firms wishing to do that Another factor that can influence investment in the long-term is the level of savings. For the purpose of this study we will consider the opportunity cost of cash hoarding, which will be calculated by considering the concurrent average inflation rate i.e. 13.83% compared with respective types of investments. Investors purchase them in order to share in the profits, or because they will increase in value, or both Some of these investments, such as stocks, come with the right to a portion of the company's value. #if one purchase shares from Berhan Bank: On 2017/18 budget year the average inflation rate was 13.83%. Year 2017/18 return on holding Berhan Bank share, given Birr 1000 investment
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