CAPM, APT treat securities at a high level of abstraction, assuming implicitly that a prior detailed analysis of each security already had been performed and that its risk and return features had been assessed Specific analyses of particular security markets: valuation principles, determinants of risk and return, portfolio strategies commonly used within and across the various markets
This lecture continues our analysis of games with payoff uncertainty. The three main objec- tives are: (1) to illustrate the flexibility of the Harsanyi framework (or our version thereof); (2)to highlight the assumptions implicit in the conventional usage of the framework, and the possible departures; (3) to discuss its potential problems, as well as some solutions to the latter