Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

what financial term refers to guessing the future of an investment when…

Question

what financial term refers to guessing the future of an investment when you do not have enough information to be certain? guessing speculation investing mutual fund what financial term means investing with borrowed money? speculation diversity loan margin

Explanation:

Brief Explanations
  • For the first question:
  • "Guessing" is a general non - financial term.
  • "Speculation" in finance is about making investment decisions with uncertainty (lack of complete information).
  • "Investing" is a broader term that usually implies more analysis rather than just guessing with lack of info.
  • "Mutual fund" is a type of investment vehicle.
  • For the second question:
  • "Speculation" is about uncertainty in investment, not borrowing.
  • "Diversity" (diversification) is about spreading investments, not borrowing.
  • "Loan" is the borrowed money itself, not the act of investing with it.
  • "Margin" specifically refers to investing with borrowed money (usually from a broker).

Answer:

  1. B. speculation
  2. D. margin