Question: ABC Ltd. traditionally uses CAPM to model risk and return. Mr. Ram Mohan has been hired recently as Financial Analyst. Mr. Ram proposes usage of

ABC Ltd. traditionally uses CAPM to model risk and return. Mr. Ram Mohan has been hired recently as Financial Analyst. Mr. Ram proposes usage of multifactor model instead of CAPM for portfolio management. Assuming the role of Mr. Ram compare and contrast the two models and their real-life implications for portfolio managers.

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