Comment on the following statement. The challenge in measuring the required return for investing is to measure

Question:

Comment on the following statement. The challenge in measuring the required return for investing is to measure the size of the risk premium over the risk-free rate, but the largely leaves this measurement as a guessing game.

Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its...