Beta is best described as a measure of: nondiversifiable risk unsystematic risk diversifiable risk O total risk O unique and firm specific risk Preferred stock is like debt primarily because preferred stockholders do not have an ownership claim, nor do they have any claim on the residual income of the firm. O All the answers are incorrect. O Common stockholders have a superior claim relative to the preferred stockholders to a firm's earnings and assets, and their dividend payments are usually fixed. High-yield bonds have a band rating above investment grade. Common stock is like debt primarily because common stockholders do not have an ownership claim, nor do they have any claim on the residual income of the firm