Which of the Following Is the Correct Order of Corporate

question 56

Multiple Choice

Which of the following is the correct order of corporate issues based on risk and return? (From most risk-return to least risk-return.)

• A) Common stock, subordinated debentures, secured debt, Treasury bills
• B) Preferred stock, common stock, subordinated debentures, secured debt
• C) Common stock, long-term government bonds, secured debt, subordinated debt
• D) Common stock, secured debt, subordinated debentures, preferred stock

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Definitions:

Variable-Ratio

A reinforcement schedule where a response is rewarded after an unpredictable number of responses, enhancing the response rate.

Compound

A substance made up of two or more elements chemically bonded together, characterized by having properties distinct from its component elements.

DRO

Differential Reinforcement of Other behavior, a technique used in behavior therapy where reinforcement is given for any response other than a targeted undesired behavior.