Short Answer Questions (10 points each, 40 points total) answer questions usually require a one-paragraph response sentences). Write your responses below and on page 3. 1. Describe how risk aversion affects a stock's 2. Discuss (5 or 6 required rate of return. the basics of loan amortization and describe a loan amortization schedule that you might use when considering an auto loan or home mortgage loan. 3. Explain what the yield curve is, what determines its shape, and how you can use the yield curve to help forecast future interest rates Discuss how bond prices are determined in the market, what the relationship is between interest rates and bond prices, and how a bond's price changes over time as it approaches maturity 4