Robert has been saving his money and decides he wants to invest it. Which of the following is considered the most speculative?

Question

Quizplus · Accepted Answer

Derivatives are considered the most speculative because they are financial contracts whose value is based on an underlying asset, like a stock or a commodity. They often involve a high degree of risk and can lead to significant losses if not managed properly. Corporate bonds and preferred shares are less speculative because they represent ownership in a company or a fixed income stream. Real estate can also be less speculative depending on the location and the current market conditions.

Robert Has Been Saving His Money and Decides He Wants