For dq1 I need three replies
DQ1
Discuss the similarities and differences between the CML and SML as models of the risk-return tradeoff. Is one model better than the other when evaluating a well-diversified portfolio? Explain your answer.
For dq2 I need three replies
DQ2
Discuss a scenario in which the CAPM and APT models would lead to contradicting conclusions regarding the selection of stocks for your portfolio. How would you address the contradiction: would you prefer CAPM over APT or find a different solution?