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The risk level of stock-futures investments is generally high. Stock futures are derivative contracts that derive their value from an underlying stock. As such, they are subject to market volatility, price fluctuations, and other risk factors associated with the Stock Market. Investors should carefully assess their risk tolerance and make informed decisions before investing in stock futures.
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How is the potential rate of return on investments related to the level of risk?
Higher risk investments have a higher potential return.
Low risk investments?
Low risk investments generally corresponds with low level returns. Two examples of low risk investments would be investment-grade corporate bonds and uninsured municipal bonds.
How can you maintain a balance between high risk and low risk investments?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
How can you maintain a balance between high-risk and low-risk investments?
"By diversifying your investments" is the way among the choices given in the question that you can maintain a balance between high-risk and low-risk investments.
What do I need to do to have diversified investments?
What one needs in order to have diversified investments is risk-taking. You must be willing to accept the risk that comes with diversified investments.
How can you maintain a balance between high risk and low risk investment?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
What does it mean to be diversified in your investments?
Spreading out your risk by having different investments.
What are risky investments?
The risk factor is down to the potential to lose the money which was invested. Most investors see it as a risk but the possible gain outweighs the potential loss (usually). To be blunt about it, basically ALL investments have an element of risk involved. The level of the risk however, is something that varies. I read a great article on InvestorBee regarding which level of investment risk would suit your budget. Here it is: https://investorbee.com/blog/blog/2011/november/risky-business.aspx
What are high risk investments?
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What does low risk investment mean?
Investment which contain lower level of exposure to risk as compared to other investments like Bank deposits or Treasury notes etc. With that it usually also has low level of interest as compared to other products available
Why you use derivates in your business?
if the business deals with investments then it will hedge your investments and will limit your downside risk...
Is there a high risk when one is new to investments?
There is high risk when one is new to investments, depending on the type of investment they are making. If it is a savings account, or a government bond, there is less risk than opposed to shares and options.
