CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

The goal of a speculative investment strategy is to ______.

A. increase expected return by decreasing risk
B. increase expected return by increasing risk
C. decrease expected return by decreasing risk
Correct Answer: B

Speculators take on additional risk. In a well-functioning market, increased risk is associated with increased expected return.

User Contributed Comments 3

User Comment
johntan1979 In layman's terms, to GAMBLE
ankurwa10 Option A would make the whole market place redundant, wouldn't it? high risk, high return? Gotta take them chances you know.
ibrahim18 I agree with @johntan1979. Real gamble
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