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Questions and Answers
What is the main difference between investing and speculating?
What is the main difference between investing and speculating?
- The level of risk and time horizon (correct)
- The type of assets involved
- The involvement of market rumors
- The expected returns
What is the primary expectation in investing?
What is the primary expectation in investing?
- Speculating on short-term price movements
- Making quick and substantial profits
- Generating a return over a relatively long time horizon (correct)
- Relying on hunches and market rumors
How are decisions in investing typically made?
How are decisions in investing typically made?
- Reliant on short-term price movements
- Based on hunches and market rumors
- Reliant on technical analysis alone
- Based on thorough analysis and fundamental soundness of the investment (correct)
What is characteristic of speculative activities?
What is characteristic of speculative activities?
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What does investing aim to achieve?
What does investing aim to achieve?
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What is the primary focus of investing?
What is the primary focus of investing?
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What is the time horizon typically associated with investing?
What is the time horizon typically associated with investing?
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What is the level of risk associated with speculating?
What is the level of risk associated with speculating?
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What type of analysis is typically relied upon in speculating?
What type of analysis is typically relied upon in speculating?
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What is the objective of investors in terms of returns?
What is the objective of investors in terms of returns?
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