Posted: May 19th, 2015

Financial Models Analysis

Financial Models Analysis

prepare a 3-4 page write up that first summarizes the main points, assumptions and application of the markowitz model, the single index model, CAPM and APT models and then highlights the pros and cons of each model relative to one another and cites papers or academic who support or refute the model. Finally, reach a conclusion regarding which model you would use to compute expected returns if you were managing money and a few of the reasons why.

Section One – Model summary and assumptions based on textbook or other sources

Section Two – Model pros, cons, support and criticism using citations beyond the textbook

Section Three – Which would you prefer to use in practice and why?