- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 4. Overview of Equity Securities
- Subject 5. Risk and Return Characteristics of Equity Securities
CFA Practice Question
Which preferred shares have lower risk?
B. Non-cumulative preferred shares
A. Cumulative preferred shares
B. Non-cumulative preferred shares
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | Cumulative shares keeps unpaid dividends, where uncumulative shares just delete it for the period so it's riskier because higher risk of a lower yeild |