If you have a very low tolerance for risk, which of the following bonds would you be least likely to hold in your portfolio?
A)A federal government bond
B)A provincial bond
C)A corporate bond with a rating of Aaa
D)A corporate bond with a rating of Baa

Question

Quizplus · Accepted Answer

A corporate bond with a rating of Baa is considered lower quality or more risky than a corporate bond with a rating of Aaa. Therefore, if you have a low tolerance for risk, you would be less likely to hold a bond with a lower credit rating. Federal government bonds and provincial bonds are typically considered the safest investments and have the lowest risk.

If You Have a Very Low Tolerance for Risk, Which