Which of the following is the correct ranking from least risky to most risky?
A) Long-term Treasury bonds, Stocks, Treasury Bills
B) Treasury Bills, Long-term Treasury Bonds, Stocks
C) Stocks, Long-term Treasury Bond, Treasury Bills
D) Stocks, Treasury Bills, Long-term Treasury Bonds

Question

Quizplus · Accepted Answer

Treasury bills are considered the least risky investment because they have the backing of the US government. Long-term Treasury bonds have a higher risk because they are susceptible to interest rate fluctuations. Stocks have the highest risk because they are subject to market volatility and the performance of the individual company. Therefore, the correct ranking from least risky to most risky is Treasury Bills, Long-term Treasury Bonds, Stocks.

Which of the Following Is the Correct Ranking from Least