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Common stock is generally considered to be a more risky asset class than corporate bonds because: A. If a firm goes bankrupt, then common stockholders
Common stock is generally considered to be a more risky asset class than corporate bonds because:
A. If a firm goes bankrupt, then common stockholders are personally liable for firm's obligations.
B. interest payments on corporate bonds are indexed for inflation, while dividends on common stock are not indexed for inflation.
C. Corporate bond prices vary directly with interest rate while common stock prices vary inversly with interest rates.
D. If a firms goes bankrupt, then bondholders' claims are paid before those stockholders
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