Question

Speculative investments assume a:

a) Low level of risk
b) High level of risk
c) Zero risk level
d) Medium level of risk

Answer 1

Speculative investments assume a high level of risk. Unlike low-risk investments, speculative investments have the potential for high returns but also carry a higher risk of loss. Investors should carefully assess the risks involved.

Step-by-step explanation:

Speculative investments assume a high level of risk. Speculation involves investing in risky opportunities in the hopes of making fast profits due to market fluctuations. Unlike low-risk investments such as bank accounts, speculative investments have the potential for high returns but also carry a higher risk of loss. It is important for investors to carefully assess the risks involved before engaging in speculative investments.