5.] Discuss the difference between the CAPM and APT in terms of the type of equilibrium the model imposes on the capital market. Which equilibrium requires fewer assumptions on the behaviour of the market participants? Which equilibrium do you nd more plausible? Explain. (10 marks) 5.2 Suppose the returns on all well-diversied portfolio is determined by the following two factor model: I"w E(rw) = a: + 31(F1 E(F1))+ 52 (F2 13072)) What does no arbitrage equilibrium imply about the value of a? Explain you reasoning. Suppose you estimate this model empirically and nd that a: > 0. How could one use this information to obtain profit int his market