Which of the Following Would Be Considered Speculative Investments

question 60

Multiple Choice

Which of the following would be considered speculative investments?

• A) Government bonds
• B) Savings accounts
• C) Certificates of deposit
• D) Certain corporate bonds
• E) Precious metals

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Definitions:

Lottery Winnings

Money or prizes won through a system of random drawing or chance.

Annual Payments

The amounts that need to be paid once every year as part of a financial obligation.

EAR

Effective Annual Rate, a representation of an interest rate that takes into account the compounding of interest, shown as an annual rate.

Preferred Stock

A type of stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.