When banks involved in trading activities attempt to outguess markets,they are

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When banks attempt to outguess markets, they are engaging in speculation, as they are taking on risk in the hopes of making a profit from market movements. Forecasting involves making predictions based on data analysis, while diversifying involves minimizing risk by spreading investments across multiple assets or markets. Riskless arbitrage involves making a profit from price discrepancies between two different markets or assets without taking on any risk.

When Banks Involved in Trading Activities Attempt to Outguess Markets,they