Considered to be the safest investment

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Reference no: EM13947466

Which one of these is considered to be the safest investment?

A. U.S. Treasury bonds

B. Common stock

C. U.S. Treasury bill

D. Preferred stock

The idea that investors in a common stock may expect a lower total return if they purchase a stock with limited price volatility rather than one with high price volatility suggests that:

A. investors are irrational.

B. there is a relationship between risk and return.

C. real rates of return will be lower during periods of price stability.

D. stocks should be avoided when inflation is low.

Reference no: EM13947466

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