Question

2. The speculator is always willing to take more risk for more
(A) Return
(B) Loss
(C) Funds
(D) None of the above​

Answer 1

Answer:

The speculator is always willing to take more risk for more

(A) Return

Answer 2

The correct answer is option (A) Return

Explanation:

• The speculator is always willing to take more risk for more Return.
• The change in the price that the investors are willing to pay for each dollar of earnings.
• PE ratio; prone to investor sentiments and emotions. So, the Total Return of the stock market = Investment Return + Speculative Return.
• The speculative return is the change in value that comes from what investors will pay for a dollar of earnings.