- CFA Exams
- CFA Level I Exam
- Study Session 13. Equity Investments (2)
- Reading 39. Overview of Equity Securities
- Subject 5. Risk and Return Characteristics of Equity Securities
CFA Practice Question
Which type of preferred shares is the least risky for investors?
A. Normal preferred shares
B. Putable preferred shares
C. Callable preferred shares
Explanation: The pre-determined price is the minimum price investors will receive, reducing the uncertainty associated with the security's future cash flows.
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