High-Risk Investment Techniques Include All of the Following Except

question 85

Multiple Choice

High-risk investment techniques include all of the following except

• A) buying common stock for cash.
• B) buying stock on margin.
• C) selling short.
• D) trading in stock options.
• E) trading in commodities.

---

Definitions:

Operations

Daily operational tasks of a business aimed at creating value for its stakeholders.

Return on Investment

A measure of the profitability of an investment, calculated as the net income from the investment divided by the cost of the investment.

Residual Income

Income that continues to be generated after the initial effort or investment has been completed, often used in the context of investments or intellectual property.

Net Operating Income

A measure of a company's profitability from its ordinary, core operations, excluding expenses and incomes from financing and investing activities.