Which of the following is the correct ranking from least risky to most risky?
A) Long-term Treasury bonds, stocks, Treasury bills
B) Treasury bills, long-term Treasury bonds, stocks
C) Stocks, long-term Treasury bond, Treasury bills
D) Stocks, Treasury bills, long-term Treasury bonds

Question

Quizplus · Accepted Answer

Treasury bills are the least risky because they have a short-term maturity and are backed by the government. Long-term Treasury bonds are riskier than Treasury bills because their prices are more sensitive to interest rate changes. Stocks are the riskiest because their value can fluctuate greatly based on market conditions and company performance.

Which of the Following Is the Correct Ranking from Least