Outline of this part This part examines the relationship between expected return and risk for portfolios and individual assets. When the capital markets are in equilibrium, they determine a trade-off between expected return and k This part is composed by four chapters: 9 capital market theory: an overview( risk and return 10 CAPM 11 APT 12 risk return and capital budgetingOutline of this part This part examines the relationship between expected return and risk for portfolios and individual assets. When the capital markets are in equilibrium, they determine a trade—off between expected return and risk. This part is composed by four chapters: – 9 capital market theory: an overview( risk and return) – 10 CAPM – 11 APT – 12 risk ,return and capital budgeting