Investors agree to invest in high-risk investments if only
1. There are any true speculations
2. The predicted return is satisfactory for taking a risk
3. There are no safe options except for holding cash
4. The return is short
O A (1)
OB (11)
OC (1)
O D (iv)
Answers
Answered by
6
Answer:
the answers is 2 if the predicted return is satisfactory for taking a risk.
Answered by
0
Answer:
All four options can be reasons for why an investor might agree to invest in high-risk investments. It depends on the individual investor's preference for risk, their financial goals, and their overall investment strategy.
- True speculations: High-risk investments can offer the possibility of large returns, but also come with the possibility of significant losses. For investors who believe that a particular investment has strong potential for growth, they may be willing to take on the risk in hopes of reaping substantial rewards.
- Satisfactory predicted return: The potential return on investment can also be a determining factor for investors. If the expected return on a high-risk investment is high enough, some investors may feel that the risk is worth taking.
- No safe options: If a person has a limited investment portfolio and does not see any safe investment options, they may choose to put their money into high-risk investments as a last resort.
- Short return: For some investors, a shorter time horizon for returns can also make high-risk investments more appealing. For example, if an investor needs to generate a quick return on their investment, they may choose a high-risk option over a long-term, low-risk investment.
It's important to note that these factors can vary greatly from investor to investor and each person's investment strategy will depend on their individual circumstances and goals.
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