Investors in preferred stock generally earn a ____ return and assume ____ risk than do investors in bonds.

Name: Investors in preferred stock generally earn a ____ return and assume ____ risk than do investors in bonds.
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Preferred stock typically offers higher returns than bonds because it comes with higher risk. Unlike bonds, which have fixed interest payments and priority in case of bankruptcy, preferred stocks have dividends that can be suspended and are lower in the repayment hierarchy than bonds.

Investors in Preferred Stock Generally Earn a ____ Return and Assume