Prime-grade commercial paper will most likely have a higher annual return than
A) a Treasury bill.
B) a preferred stock.
C) a common stock.
D) an investment-grade bond.

Question

Quizplus · Accepted Answer

Prime-grade commercial paper is considered to be a low-risk, short-term investment that is issued by large, creditworthy companies. As a result, it typically offers a higher yield than a Treasury bill, which is backed by the credit of the US government and is therefore considered to be among the safest investments available. While preferred stocks, common stocks, and investment-grade bonds may offer higher returns than Treasury bills or commercial paper, they are generally considered to be higher-risk investments.

Prime-Grade Commercial Paper Will Most Likely Have a Higher Annual