Based on risk-return tradeoffs observable in the financial marketplace,which of the following securities would you expect to offer higher expected returns than corporate bonds?

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Common stock is generally considered to have higher risk and higher expected returns than corporate bonds. U.S. Government bonds and municipal bonds are typically lower risk and lower return than corporate bonds. Commercial paper's risk and return profile is similar to corporate bonds.

Based on Risk-Return Tradeoffs Observable in the Financial Marketplace,which of the Following