Generally, the Return on an Equity Investment Is Higher Than

question 43

Multiple Choice

Generally, the return on an equity investment is higher than the return on debt or preferred stock because:

• A)equity's risk is higher.
• B)people are more willing to invest in debt.
• C)the cost of preferred stock is usually between the cost of debt and that of equity.
• D)All of the above

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Definitions:

Punishing

The act of imposing a penalty or sanction on someone as a response to their unacceptable behavior or actions.

Policing

The enforcement of laws, the prevention, detection, and investigation of crime, and the maintenance of public order.

Stereotypes

Oversimplified generalized ideas or perceptions about members of a group that can lead to misconceptions and discriminatory behaviors.

Socialization

entails the process by which individuals learn and internalize the norms, values, behaviors, and social skills appropriate to their society or culture.