1. Have you done any stock investments? Which stocks would you pick for yourlong-term investment, which ones for your short-term investment, and why?

2.Stocks versus Gambling: Critically evaluate thefollowing statement: playing the stock market is like gambling. Suchspeculative investing has no social value, other than the pleasure people getfrom this form of gambling.

3. Discuss the limitations and challenges of CAPM when you apply this model to the real world stock markets.