The High Rates of Returns, Either Positive or Negative, on Futures

question 103

True/False

The high rates of returns, either positive or negative, on futures contracts are primarily due to the high initial margin requirement.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driven by internal or external factors.

Persuasive Message

A communication designed to convince or influence the audience to adopt a certain viewpoint or to take a specific action.

Maslow's Theory

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, from most to least pressing: physiological, safety, love/belonging, esteem, and self-actualization.

Audience

The group of people targeted by a message, performance, or work, who receive and interpret the content.