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Stocks Are Riskier Than Bonds for Which of the Following

Question 5

Multiple Choice

Stocks are riskier than bonds for which of the following reasons?


A) Unlike bonds, there is no buyback requirement, no requirement to make payments periodically, and the stock may lose a great deal of value.
B) Unlike bonds, there is no requirement that a corporation must buy back shares or pay dividends.
C) Unlike bonds, stocks can lose a great deal of value.
D) Unlike bonds, stocks can be common or preferred.

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