1. Explain the difference between a “long” and a “short” position in a stock. Explain if you would take a long or a short position in the stock of a company that owns traditional mall properties.

2. How are the dividends paid to preferred stockholders different from the dividends paid to common stock holders? In your response, be sure to clearly define what it means to be perpetuity.

3. Explain the difference between the required rate of return and the expected rate of return. When comparing the required rate of return to the expected rate of return, when would we purchase the stock (i.e., when the required rate is <,>, or = to the expected rate)?