Question 1 Pick the True statement Preferred stocks have higher priorities over bonds in terms of receiving payments Having preemptive rights increases riskiness for existing stockholders Board of directors is elected by the long-term investors: both Stockholders and Bondholders Firms have no obligation to pay certain dividends or to repurchase stocks from stockholders Question 2 Mean Return Std. Dev. Of Return Connie 0.12 0.07 Charles 0.12 0.11 Cindy 0.15 0.07 Carlos 0.15 0.11 Which is the BEST investment? Connie Charles Cindy Carlos