Question: In each case, state which of the two securities is likely to provide the higher return: (a) When the stock price rises (stock or convertible

In each case, state which of the two securities is likely to provide the higher return:

(a) When the stock price rises (stock or convertible bond?).

(b) When interest rates fall (straight bond or convertible bond?).

(c) When the specific risk of the stock decreases (straight bond or convertible bond?).

(c) When the dividend on the stock increases (stock or convertible bond?).

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