- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 2. Investors and Other Stakeholders
- Subject 1. Financial Claims of Lenders and Shareholders
CFA Practice Question
From an investor's perspective, which type has a bigger "maximum loss"?
B. equity investment
C. both have the same potential maximum loss.
A. debt investment
B. equity investment
C. both have the same potential maximum loss.
Correct Answer: C
The maximum investment loss is the whole amount of the investment itself for both debt/equity investors.
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