Which of the Following Financial Instruments Entails the Most Risk

question 13

Multiple Choice

Which of the following financial instruments entails the most risk and potentially the highest returns for investors?

• A)Debt with a maturity of less than one year
• B)Bonds
• C)Common stock
• D)Preferred stock

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Definitions:

Ethical Concerns

Issues or situations that require a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Genetic Factors

Inherited elements from parents that influence an individual's traits, characteristics, and susceptibility to certain conditions.

Schizophrenia

A complex, long-term medical illness, affecting about 1% of Americans, characterized by disturbances in thought, perception, and behavior, including hallucinations, delusions, and disorganized thinking.

Concordance Rate

The statistical measure indicating the likelihood of two related individuals both exhibiting a particular trait or disorder.