1. Relative to other theories portfolio formation, discuss the advantages of utilising the capital asset pricing model to analyse investment portfolios over earlier theories such Markowitz portfolio selection and mean variance.                                                                                                                2. As a portfolio management consultant you have been approached by a prospective investor who has investible funds of $2, 500, 000. He wants to know the investment awareness available to him which will give a rate of return with minimum risk? Clearly state the risks associated with the chosen investment. 3. Discuss the difference between active investment management and passive investment management.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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                                                                                                                          1. Relative to other theories portfolio formation, discuss the advantages of utilising the capital asset pricing model to analyse investment portfolios over earlier theories such Markowitz portfolio selection and mean variance.                                                                                                               

2. As a portfolio management consultant you have been approached by a prospective investor who has investible funds of $2, 500, 000. He wants to know the investment awareness available to him which will give a rate of return with minimum risk? Clearly state the risks associated with the chosen investment.

3. Discuss the difference between active investment management and passive investment management. 

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