American Bankers Association Exam CTFA Topic 10 Question 43 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 43
Topic #: 10

[All CTFA Questions]

What is that form of investing in which future value and expected returns are highly uncertain?

AHedging

BSpeculating

CShort-term investment

DLong-term investment

Show Suggested Answer

Suggested Answer: B

by Matthew at Feb 03, 2023, 06:45 PM

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2 days ago

I'm gonna go with B) Speculating. Investing in the future when you have no idea what's gonna happen? That's pure speculation, my friend.

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3 days ago

Hmm, I'm not sure. A) Hedging could also involve a lot of uncertainty, right? This is a tricky one.

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13 days ago

I think the answer is B) Speculating. Investing in highly uncertain future values definitely sounds like speculating to me.

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17 days ago

I'm not sure, but I think hedging is also a form of investing with uncertain future value.

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19 days ago

I agree with Arminda, speculating involves high uncertainty.

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21 days ago

I think the answer is B) Speculating.

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