Which of the Following Financial Assets Is Likely to Have

question 38

Multiple Choice

Which of the following financial assets is likely to have the highest required rate of return based on risk?

• A) Corporate bond
• B) Treasury bill
• C) Preferred share
• D) Common share

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Definitions:

Full Time

Employment status where an individual works a minimum number of hours as defined by the employer, typically considered to be around 35 to 40 hours per week.

Business Profits

The financial surplus generated by a business from its operations after subtracting expenses from revenues.

Partners

Individuals who engage in a shared business or venture, contributing resources and sharing profits and losses.

Income

Financial earnings or revenue accruing to an individual, corporation, or economic entity from various sources.