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

question 54

Multiple Choice

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

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Definitions:

Innovative Firms

Companies that specialize in creating new products or services through research, development, and technology.

Further Innovation

involves the continuous process of making improvements or introducing new methods, ideas, or products beyond current advancements.

Expected-Rate-of-Return Curve

A graph depicting the expected returns on investment as a function of the level of risk.

MB = MC Decision Framework

A decision-making principle where optimal allocation of resources is achieved when marginal benefit equals marginal cost.