Explain what the Capital Asset Pricing Model $($CAPM$)$ is and calculate

and explain the result of the CAPM based on the following data.

a$.$ Expected Return: $8\%$

b$.$ Risk$-$free rate: $4\%$

c$.$ Beta of the investment: $1\mathrm{.}2$

$E{R}_i=R_f+{}_i(E{R}_m-R_f)$

where:

$E{R}_i=$ expected return $of$ investment

$R_f=$ risk$-$free rate

${}_i=$ beta $of$ the investment

$(E{R}_m-R_f)=$ market risk premium