If Investors Speculate in Derivative Contracts Rather Than the Underlying

question 61

Multiple Choice

If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve ____ returns, and they are exposed to relatively ____ risk.

• A)lower; lower
• B)lower; higher
• C)higher; lower
• D)higher; higher

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Definitions:

Target Marketing Strategy

A marketing approach focused on identifying and addressing a specific segment of the market that is most likely to purchase a company's products or services.

Target Market Segments

Target market segments are distinct groups of consumers within a broader market to whom businesses tailor their products, marketing efforts, and services based on shared characteristics or needs.

Targeting Process

A methodology utilized by companies to identify and engage with specific segments of the market that are most likely to respond positively to their products or services.

Growth Potential

The capacity or possibility for expansion or improvement within a business, market sector, or economy, often evaluated for investment purposes.