Question: 1. Define Current Yield and Yield to Maturity . Why do we need two return measures on bonds? 2. Describe the assumptions we need to

1. Define Current Yield and Yield to Maturity. Why do we need two return measures on bonds?

2. Describe the assumptions we need to make for the constant-growth dividend discount model.

3. Why risk can be measured by variance/standard deviation?

4. Briefly describe the CAPM model. Why stock/portfolio's expected returns are associated with market risk premium?

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