Question: a) Explain and critically assess the Capital Asset Pricing Model (CAPM) and one of its extensions, the Black CAPM, when all assets are risky. Draw

a) Explain and critically assess the Capital Asset Pricing Model (CAPM) and one of its extensions, the Black CAPM, when all assets are risky. Draw all relevant diagrams, including that associated with the Black CAPM.

b) Explain the concept of the Expec

a) Explain and critically assess the Capital Asset Pricing Model (CAPM) and

ted Utility Hypothesis (EUH) and state all relevant assumptions. Use equations and diagrams in your analysis. Critically discuss the strengths and weaknesses and whether the

EUH can be replaced by alternative theories.

Question Two Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant assumptions. Use equations and diagrams in your analysis. Critically discuss the strengths and weaknesses and whether the EUH can be replaced by alternative theories. Total 100% May 2022 Economics of Finance and Investment ECON 1155 Approved Question Three a) Explain and critically assess the Capital Asset Pricing Model (CAPM) and one of its extensions, the Black CAPM, when all assets are risky. Draw all relevant diagrams, including that associated with the Black CAPM. (80%)

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