Discussion 1: "Portfolio Management"
Respond to the following:
• Assess the factors that contribute to someone being risk adverse and how risk aversion may be diminished for investors.
• Explain how a given investor chooses an optimal portfolio and the most significant driver that determines if a diversified or single asset will be used.
Discussion 2: "Asset Analysis / Risk and Return"
Respond to the following:
• Recommend an alternative to the CAPM for analyzing capital assets. Provide support for your recommendation.
• Assess the effectiveness of using multifactor models to help investors understand the relative risk exposures in their portfolios relative to benchmark portfolios. Make a recommendation on how investor understanding may be improved. Support your rationale.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.