Why does the Fed increase or decrease the interest rate and what effect does it have on the market?

1) How can you use CAPM to construct a portfolio of stocks? (is is NOT a question looking for you to provide a right or wrong answer (or copy a definition via a Google search), but rather an opportunity for you to reflect on what you think about risk and return and describe your thoughts.)

2) Why does the Fed increase or decrease the interest rate and what effect does it have on the market? (is is NOT a question looking for you to provide a right or wrong answer (or copy a definition via a Google search), but rather an opportunity for you to reflect on what you think about risk and return and describe your thoughts.)

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