ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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mutual fund
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speculative investment
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stock
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bonds
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Detailed explanation-1: -A speculative investment is one with a high degree of risk where the focus of the purchaser is on price fluctuations. The investor buys the tradable good (financial instrument) in an attempt to profit from market value changes. We call somebody who makes a speculative investment a speculator.
Detailed explanation-2: -A speculative investment refers to the investment itself. These investments carry a particularly high level of risk, but that also opens the door for a substantial profit. Speculative investments tend to have higher volatility, meaning they experience frequent price fluctuations.
Detailed explanation-3: -The risk-return tradeoff states that the potential return rises with an increase in risk. Using this principle, individuals associate low levels of uncertainty with low potential returns, and high levels of uncertainty or risk with high potential returns.
Detailed explanation-4: -PS : Speculation involves high risk. Arbitrage involves limited risk. Hedging is done to avoid risk.
Detailed explanation-5: -Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking. Contracts for Difference (CFDs)