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In risk management lectures, we covered two portfolio theories. They are the mean- variance portfolio theory and the CAPM model. (a) Explain how these two

In risk management lectures, we covered two portfolio theories. They are the mean- variance portfolio theory and the CAPM model.

(a) Explain how these two portfolio theories are related to each other. (15 marks)

(b) Evaluate the strength and weakness of each theory, respectively. (10 marks)

(d) What are the similarities and differences between the Capital market line and the Security market line? (15 marks)

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