Question: Please reply me fast answer. QUESTION 9 Let rd =required rate of return on debt,rps =required rate of return on preferred stock, and rcs= required

Please reply me fast answer.

QUESTION 9

Let rd =required rate of return on debt,rps =required rate of return on preferred stock, and rcs= required rate of return on common stock. According to the risk-return relationship, which of the following is CORRECT.

  1. rd
  2. rd >rcs
  3. rps
  4. rps >rcs> rd
  5. rcs< rps

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