Question

Compared to bondholders, stockholders are generally… Group of answer choices Face lower risk and have the potential for higher returns. Face higher risk but receive a fixed payment. Face higher risk and have the potential for higher returns. Face lower risk but receive a fixed payment.

Answer 1

Face higher risk and have the potential for higher returns.

Step-by-step explanation:

Compared to bondholders, stockholders generally face higher risk and have the potential for higher returns.