For an investor who wants to speculate, which of the following investments would be appropriate?
A) Blue-chip stocks
B) Options
C) Utility stocks
D) Corporate bonds
E) Preferred stocks

Question

Quizplus · Accepted Answer

Options are a highly speculative investment, as they allow investors to make bets on the future direction of a stock or other asset with a relatively small amount of money. This means that investors can potentially earn high returns if their predictions prove accurate, but they can also lose their entire investment if their predictions are wrong. Blue-chip stocks, utility stocks, corporate bonds, and preferred stocks are all less speculative and generally considered to be more stable investments.

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