Sort of the following securities in order of riskiness (from lowest until highest): Large cap stocks,...
Sort of the following securities in order of riskiness (from lowest until highest): Large cap stocks, cash, small cap stocks, corporate bonds, government bonds.
Homework Answers
From lowest risk to the highest risk-
A. Cash will be having the lowest risk because cash will be held in hand and they will be less subject to fluctuation and risk.
B. Government bond of generally believed to be risk free and they have low risk
C . corporate bonds also have a lower risk than stocks because they are debt securities
D. Large capital stock will be having a smaller than the smaller capital stocks because they have a low beta mostly and they have survived for long period of time
E. Small cap stocks are highly risky in nature and they have the potential to lose high percentage of investment.
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Sort of the following securities in order of riskiness (from
lowest until highest): Large cap stocks,...
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