Which of the Following Is the Correct Ranking from Least

question 15

Multiple Choice

Which of the following is the correct ranking from least risky to most risky?

• A) Long-term Treasury bonds, stocks, Treasury bills
• B) Treasury bills, long-term Treasury bonds, stocks
• C) Stocks, long-term Treasury bond, Treasury bills
• D) Stocks, Treasury bills, long-term Treasury bonds

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Definitions:

Positive Abnormal Earnings

Earnings that exceed what is normally expected, based on historical trends or industry standards, often indicating superior performance.

Sustainable Earnings

Refers to the portion of a company's income considered to be predictable, repeatable, or likely to continue in the future.

Repeat Customers

Individuals or entities that make more than one purchase from a business, indicating customer loyalty and satisfaction.

Debt Retirement

The process of paying off debt before or at its maturity date, effectively removing it from the company's balance sheet.