1. Which one of the following is a disadvantage of convertible bonds?
   1. Their exposure to upside movements in the stock price.
   2. Convertible yields are less than straight bond yields of similar risk and maturity.

C) A lack of downside protection for the investor.

D) Convertibles are not callable and must be held to maturity.

2. Which one of the following variables does not have a direct relationship with the PIE

ratio?

1. The expected growth rate of dividends.
2. The dividend payout ratio.
3. The expected growth rate of earnings.
4. The required rate of return for the company's stock.

PLEASE ANSWER BOTH!!! THANK YOU