7) There is a positive relationship between risk and expected return. The higher the risk, then the higher the expected return. Please rank the following securities from the lowest risk to the highest risk using the corresponding numbers.

They are: 1) 30 year convertible corporate bonds,

2) 30 year corporate bonds,

3) preferred stock,

4) 3 month United States Treasury bills,

5) savings account

6) 30 year callable corporate bonds,

7) common stock

8) 7 day CD

9) 30 year United States Treasury Bond

1. 5, 8, 4, 9, 1, 2, 6, 3, 7
2. 5, 8, 9, 4, 1 ,2, 6, 3, 7
3. 5, 8, 4, 9, 1, 2, 3, 6 ,7
4. 5, 8, 4, 9, 6, 2, 1, 3, 7

E) NONE OF THE ABOVE