Expected to contain the highest amount of risk

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Reference no: EM131327781

1. Historically speaking, which security would be expected to contain the highest amount of risk?

A share of common stock

A Treasury bill

A bond issued by a corporation

A Treasury bond

A bond issued by a municipality

2. Which one of the following statements is more likely to be correct concerning the comment, "Stock A has a higher expected return than Stock B"?

A) Stock B is a cyclical stock

B) Stock A has a higher beta

C) Stock A has more unique risk

D) Stock B plots below the security market line

Reference no: EM131327781

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