..... is unplanned, inscientific employment of fund in a game or chance, without knowledge of nature of risk.

RISK AND RETURN

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

____ is unplanned, inscientific employment of fund in a game or chance, without knowledge of nature of risk.

A	SPECULATION
B	GAMBLING
C	INVESTMENT
D	HEDGING

Explanation:

Detailed explanation-1: -A large number of securities in the market. Only a particular company. Interest risk, market risk, and purchasing power risk. Therefore, Unsystematic risk refers to risk which is caused due to factors unique or related to a firm or industry.

Detailed explanation-2: -Employment of funds with the aim of achieving additional income is known as Investment. The answer is (A) Investment.

Detailed explanation-3: -Gambling refers to wagering money in an event that has an uncertain outcome in hopes of winning more money, whereas speculation involves taking a calculated risk in an uncertain outcome. Speculation involves some sort of positive expected return on investment-even though the end result may very well be a loss.

Detailed explanation-4: -While there is risk involved in trying to increase the amount of money you have, from investing to gambling or even building a business, investing is typically done through informed analysis, while gambling, at the end of the day, is purely chance.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

RISK AND RETURN