Question: Question 3: 20 marks Explain the difference between traditional portfolio management approach and modern portfolio approach. What is the drawback of each of these approaches?

Question 3: 20 marks

  1. Explain the difference between traditional portfolio management approach and modern portfolio approach. What is the drawback of each of these approaches? (10 marks)
  2. Discuss the various forms of market efficiency. Include in your discussion the information sets involved in each form. Also, discuss the implications for the various forms of market efficiency for the various types of securities' analysts. (10 marks)

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