1. Which of the following bonds can be changed, at the investor's option, into a specific number of shares of common stock?

Group of answer choices

mortgage bond

convertible bond

debenture bond

preferred bond

2. The Capital Assets Pricing Model (CAPM) theorizes that the expected return on a portfolio of stocks depends upon the level of systematic risk. The measure of each stock's systematic risk within the portfolio is called its:

Group of answer choices

default risk premium

beta

dividend

interest rate risk

3. Inflation, recession, and high interest rates are economic events that are best characterized as being:

Group of answer choices

among the factors that are responsible for market risk

systematic risk factors that can be diversified away

risks that can be controlled by picking the right stocks

company-specific risk factors that can be diversified away