For an investor who wants to speculate, which of the following investments would be appropriate?
A)red-chip stocks
B)derivatives
C)utility stocks
D)corporate bonds
E)preferred stock issues

Question

Quizplus · Accepted Answer

Derivatives are the most appropriate investment for speculation as they provide the potential for high returns through leveraging, while also having high risks involved. Red-chip stocks, utility stocks, corporate bonds, and preferred stock issues, on the other hand, are considered more conservative investments and are not typically associated with speculation.

For an Investor Who Wants to Speculate, Which of the Following