CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

Which type of common shares is the most risky?
A. Normal common shares
B. Putable common shares
C. Callable common shares
Explanation: This is because the call price limits investors' potential future total returns.

User Contributed Comments 2

User Comment
siggarusfigs Is the definition of risk (when used plainly) standard deviation? The call option would reduce volatility...
Maybe it's because the risk only means downside risk for equity? Or the risk is defined by Beta?
dbalakos I agree with siggarusfigs risk as accounted for by stdev is less in callable stock. Expected return is the one that suffers
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