Describe the Capital Asset Pricing Model (CAPM) and what it tells us.

Question:

Describe the (CAPM) and what it tells us.

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...