Question

What is speculation?

an investment of large amounts of money in mutual funds

diversifying purchases of stock

a high-risk investment with borrowed money in hope of big returns

a low-risk investment with borrowed money in hope of small returns

Answer 1

The correct answer among the choices given is the third option. Speculation would mean to an economist as making high-risk investments with borrowed money. It is the purchase of something hoping for it to be more valuable at a certain time.

Step-by-step explanation: