Which of the following securities would investors consider the most risky?

Question

Quizplus · Accepted Answer

Common stock is generally considered the most risky security as it represents ownership in a company and its value is subject to market fluctuations and changes in company performance. Preferred stock, on the other hand, has a more fixed value and pays consistent dividends, making it less risky. Bonds are typically considered less risky than stocks as they represent debt that the issuer has promised to repay, and mutual funds spread risk across multiple assets.

Which of the Following Securities Would Investors Consider the Most