Dq1discuss the similarities and differences between the cml, Ask an Expert

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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.

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?

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