In evaluating stocks for Shariah compliance, different filters are used. Depending on how tight or loose the filter is, a stock deemed shariah compliant by one may be rejected by another. Thus, the Dow Jones filter is said to be much tighter than that of the Securities Commission of Malaysia. Many Fuqaha (jurists) are of the opinion that it is better to err on the side of conservatism and adopt tighter filters rather than looser ones. Given your understanding of the Markowitz model, Modern Portfolio Theory and CAPM, evaluate the opinion.

(50 marks)