Applying What You Have Learned About Investments Introduced to You

question 39

Multiple Choice

Applying what you have learned about investments introduced to you in Chapter 19,put the following investments in order from riskiest to least risky.Which of following lists begin with the least risky investment and ends with the most risky? Least risky = 1;most risky = 5

• A)1)Bonds;2)Mutual Funds;3)ETFs;4)Preferred Stock;5)Common Stock
• B)1)Preferred Stock;2)Common Stock;3)Mutual Funds;4)ETFs;5)Bonds
• C)1)Common Stock;2)Bonds;3)Mutual Funds;4)ETFs;5)Preferred Stock
• D)1)Bonds;2)Common Stock 3)Mutual Funds 4)ETFs 5)Preferred Stock

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Definitions:

Efficient Level

Describes a state where resources are allocated in a way that maximizes productivity or utility with minimal waste.

External Costs

Uncompensated negative effects experienced by others due to an individual or company's actions, not reflected in market prices.

Marginal Damage

The additional harm or cost caused by producing one more unit of a good or service, often used in the context of environmental economics.

Total Damage

Total Damage refers to the cumulative harm or financial loss incurred as a result of an action or event.