GED Practice Exam 2025 – Complete Test Prep and Guide

The sequence indicating businesses from least to most risky for investors is determined by credit ratings, which assess the likelihood of a borrower defaulting on their debt obligations. Credit ratings range from high-quality, low-risk ratings to lower-quality, higher-risk ratings.

The progression from least to most risky begins with AAA, which signifies the highest credit quality and minimal risk of default. Following that is AA, indicating a very strong capacity to meet financial commitments but slightly more risk than AAA. Next is BBB, which represents moderate credit risk; it is still considered investment-grade but is more susceptible to changes in economic conditions. Finally, BB is classified as non-investment-grade or "speculative," indicating a higher risk level.

Understanding the hierarchy helps investors make informed decisions based on their risk tolerance. In the correct sequence (AAA, AA, BBB, BB), the ratings correctly reflect an increasing level of risk associated with the businesses being assessed. Therefore, the answer accurately represents the order from the least risky (AAA) to the most risky (BB).