1. What is the difference between the expected return and the required return? When should the two returns be equal? 2. What is the difference between the value of a stock and its price? When should they be equal? 3. What variables affect the value of a stock according to the dividend-growth model? What role do earnings play in this model? 4. How do interest rates and risk affect a stocks price in the Capital Asset Pricing Model? 5. The efficient market hypothesis suggests that it is difficult to outperform the market on a consistent basis. Are there possible exceptions to the hypothesis that concern the valuation of common stock?