In General, Which of the Securities Below Has the Highest

question 124

Multiple Choice

In general, which of the securities below has the highest expected return on investment?

• A)U.S government bonds
• B)Corporate bonds
• C)Preferred stock
• D)Common stock

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Net Cash Flow

The difference between a company's cash inflows and outflows in a given period.

Quality of Income Ratio

A metric that measures the proportion of income that comes from core business operations, indicating the reliability of a company's earnings.

Indirect Method

A way of reporting cash flows from operating activities by adjusting net income for changes in balance sheet accounts.