(b) (i) Define equity. List the typical characteristics of equity. How do these compare to the typical characteristics of bonds? (ii) Derive the equation for the Gordon Growth Model of stocks. How should it be modified if interest rates are divided into risk-free and risky components? (iii) What is the basic idea behind the efficient markets hypothesis? Why are there three different forms of the hypothesis? (iv) Briefly discuss whether empirical findings support the efficient markets hypothesis. (35 marks total)