Question

If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve ________ returns, and they are exposed to relatively ________ risk.

Answer 1

Answer:

Explanation: do your best and i hope you do good

Answer 2

When investors speculate on derivative contracts, they most likely achieve higher returns but incur a higher risk.

What kind of return do investors get on derivative contracts?

Investors who go in on derivative contracts will most likely earn a higher return due to the nature of derivatives.

However, they will incur higher risk than when they invest in the underlying assets.

In conclusion, the answer is higher; higher.

Find out more on derivatives at https://brainly.com/question/26300964.