Which of These Investments Is Most Likely to Have the Highest

question 109

Multiple Choice

Which of these investments is most likely to have the highest expected risk?

• A)commodity and financial futures
• B)U.S.Treasury issues
• C)Growth stock funds
• D)Preferred stock

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Sunk Cost

A cost that has already been incurred and cannot be recovered or changed.

Period Cost

Expenses on the income statement that are not directly tied to the production of goods, including sales, administration, and other overhead costs.