Which of the Following Would Be Considered Speculative Investments

Answer 1 of 3. Investments at the top of the pyramid offer a greater potential reward through capital appreciation but also have a greater potential for the loss of principal.

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The market value of tradable goods like stocks currencies commodity futures and options changes rapidly with the change in market conditions so any investment in these goods is termed as a speculative investment.

. Buying a stake of land to mine for gold. Sqfety and risk 58. According to Wikipedia the only characteristic necessary for something to be considered an investment is to be able to generate an income whether from the asset itself or from the assets appreciation.

38 chance 100 gain. Corporate bonds O Government bonds Futures O Individual stocks. Conservative investment Complete loss.

Investments at the top of the pyramid tend to be non-liquid and speculative in nature. In a given process of speculation the investor purchases a. Speculators often use financial derivatives such as options contracts futures contracts and other synthetic investments rather than buying and holding specific securities.

Which of the following investments is better. Certificates of deposit D. Which of the following are considered to be speculative investments.

Bezglasnaaz and 24 more users found this answer helpful. Your investment will be worth 160000 at retirement. O Platinum O Baa3 rated preferred stock O Blue-chip stocks O BBB- rated corporate bonds.

In particular speculative risk is the possibility that an investment will not. Often it is buying on a hunch. Buying without any calculation of the probability of a result the investment going up or down.

Which of the following would be considered speculative investments. 356 Which of the following would be considered speculative investments. Speculative investments are which of the following.

35 chance No gain or loss. 8 Mutual funds range from very conservative to extremely speculative investments. A speculator focuses on the expected future price of the asset.

35 chance 20 gain. Question 21 Which of the following are considered speculative investments. Before providing examples of potential speculative risks its very important to first understand or define what you mean by speculation and by the term investment Thats especially important since many people use the terms.

Speculative investments include all of the following except A. Considered to be speculative investments 3. Which of the following would be considered speculative investments.

Government bonds Savings accounts Certificates of deposit Certain corporate bonds E. On the contrary certificate of deposit savings account. How would each of the following events affect Cheryl Shirkers supply of laboraCheryls firm announces a reorganization plan in which she will get a big promotion and raise in six monthsbCheryls speculative investment in plutonium futures pays off big netting her a profit of 300 thousandcCheryls father who had planned to leave.

Dividends or interest other financial indicators of an asset are the least of his or her concerns. Speculative investments happen in real estate markets currencies stocks and commodity futures. If it seems like a coin flip it is likely speculation.

A _____________ is an employer-sponsored retirement account and participating in one is one of the easiest ways to begin an investment program. 20 chance Complete loss. Investments that are extremely high riskhigh reward and are often binary are speculative.

Take a look at this risk pyramid from National Endowment for Financial Education NEFE. Speculative risk is a category of risk that when undertaken results in an uncertain degree of gain or loss. Certain corporate bonds E.

Bought and sold through commodity exchanges 2. 2 chance No gain or loss. Certificates of deposit D.

Commodity contracts are 1. Permit investors to take either long or short positions asked Aug 17 2017 in Business by LadyBugMichelle. In contrast speculation is the purchase of an asset hoping that it will become more.

It has nothing to do with the nature of the investment. Certain corporate bonds E. A high rate of return will give you the highest total dollar return.

Statistics and Probability questions and answers. 356 Speculative investments include all except. Speculation or a speculative investment is one that carries a high degree of risk wherein the buyer focuses on the price fluctuations.

If you invest 4000 per year over the next 40 years for retirement which of the following is correct. 9 Although useful for many things the Internet cannot be used to monitor the value of stock bond and mutual fund investments. It is an investment that carries a high risk and is based on rapid price fluctuation.

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