Discussion::
1. Asset Analysis / Risk and Return
Recommend an alternative to the CAPM for analyzing capital assets. Provide support for your recommendation.
Assess the effectiveness of using multifactor models to help investors understand the relative risk exposures in their portfolios relative to benchmark portfolios. Make a recommendation on how investor understanding may be improved. Support your rationale.
2. Business Risk and Analysis / Investment Valuation
Determine whether a steel company or a retail food chain would have a greater business risk. Provide support for your rationale.
Discuss why you would not expect all industries to have a similar relationship trend to the economy. Provide an example of two industries that have a different relationship to the economy and explain the difference.