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When Discussing Convertible Bonds,have We Repealed the Old Risk-Return Tradeoff

Question 146

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When discussing convertible bonds,have we repealed the old risk-return tradeoff principle-the idea that to get superior returns we must take larger than normal risks? With convertible bonds,we appear to limit our risk while maximizing our return potential.Although there is some truth to this statement,what are the many qualifications that indicate there is still risk associated with this type of bond?

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Qualifications to convertible bonds:
• ...

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