Which of the Following Investments Has the Highest Risk

question 45

Multiple Choice

Which of the following investments has the highest risk?

• A)preferred stock
• B)common stock
• C)corporate bonds
• D)options
• E)real estate

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Definitions:

Capital Contributions

Funds or assets provided by owners or shareholders to a company for the purpose of growing the business or covering operational expenses.

Accumulated Depreciation

The total amount of a tangible asset’s cost that has been allocated as depreciation expense since the asset was put into use.

Fair Value

The estimated market price of an asset or liability, reflecting the price at which an orderly transaction would take place between market participants.

Limited Partnerships

Limited partnerships are business entities with one or more general partners managing the business and limited partners who provide capital but have limited liability.