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1. Risk Premium Discuss why common stocks must earn a risk premium. 2. Rate Anticipation Swaps (Bonds) Discuss rate anticipation swaps as a bond portfolio

1. Risk Premium Discuss why common stocks must earn a risk premium.

2. Rate Anticipation Swaps (Bonds) Discuss rate anticipation swaps as a bond portfolio management strategy.

3. Duration (Bonds) Discuss duration. Include in your discussion what duration measures, how duration relates to maturity, what variables affect duration, and how duration is used as a portfolio management tool (include some of the problems associated with the use of duration as a portfolio management tool).

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