Futures are low-risk, low-return investments because no funds are invested.

Name: Futures are low-risk, low-return investments because no funds are invested.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Futures involve the purchase or sale of an underlying asset at a future date, and therefore do involve the investment of funds. While futures can be used to hedge risk, they can also be highly speculative and therefore may not always be low-risk.

Futures Are Low-Risk, Low-Return Investments Because No Funds Are Invested