Let's specialize the concept of returns we have seen generically for securities to stocks. The gross return of stock i between time t andt1 in state s (given available information at t) is Ri,t:t+1(s) Ri,t+1(s) _ Pitti (s) + Di,1+1 (s) where . it: price at time t of stock i . Di,t+1(s): dividend paid at time t 1 by stock i in state s Pit+1(s): price of stock i at timet 1 in state s (after the dividend is paid; ex-dividend price Answer the following two conceptual questions 1. Why Pit is not a function of the states of the world? Given the definition of linear return rit t+1(s) ri t+1(s) ital gain/loss as CG(s) Rit+1(s)-1. if we define cap- what is the implied definition of dividend yield 2