- 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 type of common shares is the least risky?
B. Putable common shares
C. Callable common shares
A. Normal common shares
B. Putable common shares
C. Callable common shares
Correct Answer: B
The pre-determined price is the minimum price investors will receive, reducing the uncertainty associated with the security's future cash flows.
User Contributed Comments 2
| User | Comment |
|---|---|
| aniketcpp | Putable common share is least risky for investor perspective,but high risky for company perspective.Right? |
| jonan203 | yes |