Which of the following has the highest expected return to the investor?

Question

Quizplus · Accepted Answer

Common stock has the potential to provide the highest expected return to investors because it is considered a riskier investment than preferred stock or bonds. While the return on common stock is not guaranteed, it has the potential for long-term growth and capital appreciation. Preferred stock typically offers a fixed dividend payment and lower volatility, while bonds offer a fixed interest payment and lower risk.

Which of the Following Has the Highest Expected Return to the Investor