a List reasons that an international extension of the CAPM is problematic b In an international extension of the CAPM, why would the optimal portfolio differ from the world market portfolio, as suggested by the traditional CAPM, even if the markets are fully efficient ...

a The derivation of the traditional CAPM relies on assumptions about investors expectations a ...

a. List reasons that an international extension of the CAPM is problematic. b. In an international extension

Question:

a. List reasons that an international extension of the CAPM is problematic.
b. In an international extension of the CAPM, why would the optimal differ from the world market as suggested by the traditional CAPM, even if the markets are fully efficient?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...