Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)Preferred shares are usually a more risky investment than common shares.
• B)Convertible preferred shares are exchangeable for a set number of common shares at the option of the investor at some specified date after the shares have been issued.
• C)Callable preferred shares can be exchanged for a designated cash value at the option of the investor.
• D)Preferred shares typically increase significantly in value over time.

Understand the concepts of normal goods, inferior goods, and Giffen goods.

Analyze how changes in income and prices affect consumer choices.

Comprehend the income and substitution effects and their impact on consumer behavior.

Determine the optimal consumer choice in various scenarios.