Question

What are the possible benefits of investments that assume greater speculative risk?
a) greater point loss
b) greater point gain
c) greater debt
d) greater input from the investor

Answer 1

The possible benefits of investments that assume greater speculative risk primarily include:

b) **greater point gain**

Investments that come with higher speculative risk often have the potential for higher returns. While they also carry the possibility of greater losses, the attraction lies in the opportunity for substantial gains if the investment performs well.

Options a), c), and d) do not accurately reflect the benefits of such investments. Greater point loss refers to the downside risk, greater debt is a liability, and greater input from the investor does not necessarily indicate a benefit.