Preferred Stock Is a Hybrid-A Cross Between a Common Stock

question 71

True/False

Preferred stock is a hybrid-a cross between a common stock and a bond-in the sense that it pays dividends that normally increase annually (like a stock),but its payments are contractually guaranteed (like interest on a bond).

---

Definitions:

Standard Deviation

A measure of the dispersion or variation in a set of numerical data, indicating how spread out the values are from the mean.

Standard Error

A statistical term that measures the accuracy with which a sample distribution represents a population using standard deviation.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect in a given set of observations.