Primary objective of replacing full capitalization

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1. What is the primary objective of replacing full capitalization based methodology with free float based methodology for KSE-100 Index composition? Also differentiate between Sector Rules and Free-float Capitalization Rules for the recomposition of the index.

2. The common stockholder is considered the residual owner of a corporation. What does it mean in terms of risk and return?

3. Why do callable bonds typically have higher yield to maturity than non-callable bonds, holding all other things constant? Is the yield differential between callable and non-callable bonds likely to be constant over time? Why?

Reference no: EM132608659

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