"As we all saw from this class, many of the building blocks of the traditional finance theory were problemed and challenged when it came to the relevance of such theory to the problems that investors and managers face in the real world every single day. Building blocks like all the risk definitions and tools; and even the whole CAPM, lies at the heart of the working of financial markets. So I would say there is nothing left of the traditional finance paradigm that we could use to solve problems in the real world!"

How would you respond to the above statements? Do you agree or disagree with the above; and which parts? describe your thoughts and reasoning in necessary detail. Make sure you are very clear in the position you take on for any key issue. Also feel free to reference your position(s).