Futures Are Low-Risk, Low-Return Investments Because No Funds Are Invested

question 24

True/False

Futures are low-risk, low-return investments because no funds are invested.

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Definitions:

Investment Projects

Long-term projects undertaken by a business to generate revenue, increase capacity, or improve efficiency, often requiring significant initial investment.

Scrap Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.

Annual Net Operating Income

The total profit generated from a company's operations over a fiscal year, excluding certain costs and revenues.