Which of the following is NOT a potential advantage of speculating in futures?
A)Leverage
B)Ease of transacting
C)Low transactions costs
D)High and narrow probability distribution of expected returns

Question

Quizplus · Accepted Answer

High and narrow probability distribution of expected returns is not a potential advantage of speculating in futures. A narrow probability distribution means that the potential for large gains or losses is limited, which may not be attractive to some speculators. Other potential advantages of speculating in futures include leverage, ease of transacting, and low transaction costs.

Which of the Following Is NOT a Potential Advantage of Speculating