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The risk-free rate of return subtracted from the expected market rate of return is called the: Expected rate of return. Unsystematic rate of risk. Unexpected

The risk-free rate of return subtracted from the expected market rate of return is called the:

Expected rate of return.

Unsystematic rate of risk.

Unexpected rate of return.

Real rate of expected return.

Risk premium.

You wish to be on the board of directors of a company. If you wish to buy as low a percentage of the total outstanding shares as is necessary to guarantee yourself a seat on the board, you should look for a firm that has ________.

Cumulative preferred stock.

Straight voting common stock.

Cumulative voting common stock.

Convertible debentures.

Cumulative voting Class B stock

A put provision in a bond indenture allows:

A bond issuer to recall the bond after a specified period of time at a price that exceeds the face amount.

A bondholder to force the issuer to increase the coupon rate if inflation increases by more than a specified amount.

The bondholder to force the issuer to buy back the bond at a specified price prior to maturity.

The issuer to suspend interest payments for any year in which the interest expense exceeds the net income of the firm.

The issuer to convert a coupon bond into a zero-coupon bond at their discretion.

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