Which of the following are classified as fixed income securities?

Fixed income securities are financial instruments that provide returns in the form of regular, or fixed, interest payments and the return of principal at maturity. Government bonds are a classic example of fixed income securities, as they are issued by governments and typically offer a predetermined interest rate, providing stability and predictability. Preferred shares, while they can be seen as hybrid instruments, generally provide fixed dividends, making them behave more like bonds than common stocks.

The correct choice focuses on these characteristics, aligning with the definitions of fixed income securities. Government bonds secure interest payments and capital return, while preferred shares offer dividend payments, providing a relatively stable income stream compared to common stocks. This stability in income is why both government bonds and preferred shares fit within the classification of fixed income securities.

In contrast, corporate stocks represent ownership in a company and can offer dividends, but their returns are not guaranteed and can fluctuate widely based on company performance. Therefore, they do not qualify as fixed income securities. Properties and corporate stocks similarly lack the characteristics required to be categorized as fixed income securities, as they do not provide fixed interest payments or guaranteed returns, further validating the selection of the correct answer.