Question: Problem 2 Compare CAPM and Consumption CAPM: a. Contrast the two models in. words. b. Explain why, in principle, the consumption CAPM is more satisfactory.

Problem 2 Compare CAPM and Consumption CAPM: a. Contrast the two

Problem 2 Compare CAPM and Consumption CAPM: a. Contrast the two models in. words. b. Explain why, in principle, the consumption CAPM is more satisfactory. C. Can you think of circumstances where the two models are essentially identical

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