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

Limited Time Offer

25%

Off

Get Premium CTFA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Reuben

1 months ago

Uncertain future returns? Isn't that just called 'Tuesday' for most of us?

upvoted 0 times

...

Camellia

2 months ago

Investing in the future? Sounds like a job for Marty McFly and his DeLorean!

upvoted 0 times

Derrick

10 days ago

Short-term investments can also have uncertain future value and returns.

upvoted 0 times

...

Oretha

14 days ago

C) Short-term investment

upvoted 0 times

...

Jaime

16 days ago

I think it's speculating because the future value and returns are uncertain.

upvoted 0 times

...

Arletta

29 days ago

C) Short-term investment

upvoted 0 times

...

Marleen

1 months ago

B) Speculating

upvoted 0 times

...

Gregoria

1 months ago

B) Speculating

upvoted 0 times

...

Phillip

1 months ago

A) Hedging

upvoted 0 times

...

Nakita

2 months ago

D) Long-term investment? Really? I thought that was the whole point of long-term investing - to reduce uncertainty and increase stability.

upvoted 0 times

...

Gearldine

2 months 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.

upvoted 0 times

Ashton

2 hours ago

I think it's important to consider all the possibilities before making a decision.

upvoted 0 times

...

Staci

4 days ago

I agree, B) Speculating is definitely a risky move.

upvoted 0 times

...

Teri

14 days ago

Yeah, speculating can be exciting but also very unpredictable.

upvoted 0 times

...

Lou

16 days ago

I'm not sure about speculating, maybe it's better to go with a safer option.

upvoted 0 times

...

Leontine

17 days ago

I agree, speculating is definitely a risky form of investing.

upvoted 0 times

...

Stephania

2 months ago

I think B) Speculating is the way to go. It's all about taking risks.

upvoted 0 times

...

Germaine

2 months ago

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

upvoted 0 times

...

Hershel

2 months ago

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

upvoted 0 times

Bong

1 months ago

I think so too, speculating involves taking on higher risks for potentially higher returns.

upvoted 0 times

...

Alesia

1 months ago

I agree, speculating seems like the right answer in this case.

upvoted 0 times

...

Micaela

2 months ago

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

upvoted 0 times

...

Hannah

2 months ago

I agree with Arminda, speculating involves high uncertainty.

upvoted 0 times

...

Arminda

2 months ago

I think the answer is B) Speculating.

upvoted 0 times

...