1. What is the purpose of the schematic starting with financing sources for the firm, to macro-financial factors such as fiscal and monetary policy? Could the 2007-2010 financial crisis be forecasted by the elements of the schematic?
2. Discuss the similarities and the difference between the CML and the CPM.
3. Discuss beta and its components.
4. Discuss the role of indifference curves and the efficient frontier in constructing the CML. Also discuss the components of the CML equation.