有问题

问题如下：

Question A company has issued only one class of common shares, and it does not pay dividends on them. It has also issued two types of non-cumulative preference shares: one that is putable and the other callable. Which of these securities will most likely offer the lowest expected return to the investor?

选项：

A.Putable preference shares

B.Common shares

C.Callable preference shares

解释：

A is correct. Putable preference shares are less risky than their callable counterparts. They give the investor the option to put the shares back to the company. Because of the lower risk, they will provide a lower expected rate of return. Common shares are the most risky, whether or not they are dividend paying, and are likely to offer the highest expected return.

B is incorrect. Common shares are the most risky, whether or not dividend paying, and are likely to offer the highest expected return. Though these preference shares have non-cumulative dividend feature, preference shareholders will receive priority if the company is liquidated.

C is incorrect. Callable preference shares are more risky than their putable counterparts and so they are likely to offer higher expected returns than putable preference shares.