Answer the following questions by providing an explanation in your own words: 1. The value of a stock is the present value of an infinite stream of expected future dividends discounted at an investor's required rate of return. Explain why the previous statement is true for an investor who plans to hold the stock only for one year. 2. Explain why preferred stock has features similar to a corporate bond as well as common stock. 3. The expected return on a portfolio of stocks is the weighted average of the expected returns on individual stocks in the portfolio, where the weights represent the proportionate investment in each stock. Is the portfolio standard deviation also a weighted average of the individual stock's standard deviation? 4. What is diversification? In this context, explain what diversifiable risk and market risk is. Give a few examples of each type of risk. How is market risk measured