Applying What You Have Learned About Investments as Introduced to You

question 270

Multiple Choice

Applying what you have learned about investments as introduced to you in Chapter 19, put the following investments in order from least risky to riskiest. Which of following lists begin with the least risky investment and ends with the most risky? Least risky = 1; most risky = 5.

• A) 1) Bonds; 2) Mutual Funds; 3) ETFs; 4) Preferred Stock; 5) Common Stock
• B) 1) Preferred Stock; 2) Common Stock; 3) Mutual Funds; 4) ETFs; 5) Bonds
• C) 1) Common Stock; 2) Bonds; 3) Mutual Funds; 4) ETFs; 5) Preferred Stock
• D) 1) Bonds; 2) Common Stock 3) Mutual Funds 4) ETFs 5) Preferred Stock

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Definitions:

Groupthink

Kind of thinking that occurs when people place more importance on maintaining group cohesiveness than on assessing the facts of the problem with which the group is concerned.

Challenger Disaster

A catastrophic event when the Space Shuttle Challenger broke apart shortly after liftoff on January 28, 1986, leading to the deaths of all seven crew members.

Bay Of Pigs

The Bay of Pigs refers to a failed invasion of Cuba in 1961 by a CIA-sponsored paramilitary group aiming to overthrow Fidel Castro's communist government.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.