Which of the Following Is the Correct Order of Corporate

question 63

Multiple Choice

Which of the following is the correct order of corporate issues based on risk and return? (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:

Output

The amount of something produced by a person, machine, or industry.

Average Cost

The total cost divided by the quantity produced, measuring how much on average each unit of output costs to produce.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable cost divided by the quantity of output produced, indicating the variable cost of producing each unit of output.