Investment is one of the most important issues both from macro and micro points of view. If we define the investment as delaying the consumption of current resources for the benefit of having access to more resources in the future, we will find the importance of recognizing the opportunities through which one can find more capital, twice as much important. This study will examine the return and risk of four investment alternative opportunities (include investing on stocks, gold, foreign exchange and bank deposits) based on the historical monthly data. Then according to trade-off of return and risk of investment, each alternative will be compared.
The outcome of this research indicates that the return of stock will benefit the investors more than having their capital invested on other alternative investment opportunities, within the given period. Meanwfile considering the high rate of return on investment on stocks, this opportunity relatively carries lower risks than other alternative investment opportunities.