Question: 1. Compare the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and the Fama-French 3 Factor Model. Discuss their key differences, assumptions, and how

1. Compare the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and the Fama-French 3 Factor Model. Discuss their key differences, assumptions, and how each addresses the limitations of CAPM in explaining stock returns.2. Explain the roles of the Security Market Line (SML) and the Capital Market Line (CML) in portfolio theory. How do these lines relate to CAPM and help investors assess risk and return?

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