Which of the following securities has the highest risk?Question 14Select one:a.Agency bondsb.Treasury billsc.Treasury bondsd.Corporate bonds

To determine which of the given securities has the highest risk, we can analyze the typical risk levels associated with each option:

1. Agency Bonds: These are issued by government-affiliated organizations and generally have low default risk but may have some exposure to interest rate risk.

2. Treasury Bills: These are short-term securities issued by the U.S. Treasury and are considered one of the safest investments available, with very low risk.

3. Treasury Bonds: These are long-term securities also issued by the U.S. Treasury, likewise offering very low risk due to being backed by the government.

4. Corporate Bonds: These are issued by companies and typically carry higher risk compared to government securities because they are subject to the company's financial stability. There's a potential for default if the company struggles financially.

Conclusion

Considering the risk levels:

• Agency bonds, Treasury bills, and Treasury bonds are all relatively low-risk securities.
• Corporate bonds have a higher risk level due to the potential for default by the issuing corporation.

Final Answer

Corporate bonds have the highest risk among the options provided.