A client investing in derivative type investments carries the risk of

Question

Quizplus · Accepted Answer

Derivative type investments can be difficult to value accurately and in a timely manner, which increases the risk for investors. This is because derivative instruments are often highly complex and may involve a range of underlying assets, making it difficult to determine their true value precisely. As a result, investors may face increased uncertainty and volatility in their investments, which could lead to unexpected losses or lower-than-expected returns.

A Client Investing in Derivative Type Investments Carries the Risk