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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
Brief Explanations
- For the first question: Speculation involves taking a position in an investment with an expectation of future price movements without having complete certainty, often based on guesswork and limited information. Guessing is too general and not a formal financial term in this context. Investing implies a more informed and usually less risky approach with an aim for long - term growth. A mutual fund is a type of investment vehicle, not the act of guessing about an investment's future.
- For the second question: Margin investing is the practice of borrowing money (usually from a broker) to invest. Speculation is about the nature of the investment (risky, based on guesses about future prices), not about using borrowed money. Diversity (diversification) is about spreading investments across different assets. A loan is a general term for borrowed money, but in the context of investing with borrowed money, the specific financial term is margin.
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First question: B. speculation
Second question: D. margin