1. Convertible bonds are bonds which may be converted into the stock of the issuer at the discreation of the issuer during a specified period of time. True or False

2. A debenture is a contract identifying all of the characteristics and obligations related to the bond and will include the coupon rate, date of maturity, par value and any protective covenants. True or False

3. The beta coefficient provides a measure of variance in investment returns and is determined using regression analysis. True or False

4. Teara's London Fashions, Inc. has a beta of 2.13. If the current rate on Treasury Bills is observed to be 4.5% and the stock market has an expected risk premium requirement of 8%, investors can expect a return of 11.96% on the stock. True or False