Assume the Securities Are All Issued by the Same Firm

question 11

Multiple Choice

Assume the securities are all issued by the same firm.From the investor's standpoint,rank the following securities in order of increasing risk (the number of the least risky security is placed first,or to the left,in the answer set) .
(1) Preferred stock.
(2) Income bonds.
(3) Convertible preferred stock.
(4) Mortgage bonds.

• A) 1,2,3,4
• B) 4,1,2,3
• C) 4,1,3,2
• D) 4,2,1,3
• E) 4,2,3,1

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Definitions:

Respiration

The physiological process of exchanging gases between an organism's cells and its environment, involving oxygen intake and carbon dioxide expulsion.

Digestion

The biological process by which food is broken down into smaller components, eventually to be absorbed into the bloodstream.

Homeostasis

A state of steady internal, physical, and chemical conditions maintained by living systems.

Insulin

A hormone produced by the pancreas that helps regulate blood sugar levels by allowing cells to absorb glucose.