For over forty years, the Capital Asset Pricing Model (CAPM) has been subject to intense scrutiny from academics and practitioners. Do you think CAPM work or not work? Please provide a detailed evaluation of the evidence by answering the below questions. 1. How would you test the CAPM empirically? You need to detail the testing procedure. (1 mark) 2. What is the existing empirical evidence against the CAPM? (1 mark) 3. What is the existing empirical evidence supporting the CAPM? Provide the explanation why the CAPM works in such settings. (2 marks) 4. Do multifactor models provide a solution to CAPM's failure? Why/Why not? (1 mark) For over forty years, the Capital Asset Pricing Model (CAPM) has been subject to intense scrutiny from academics and practitioners. Do you think CAPM work or not work? Please provide a detailed evaluation of the evidence by answering the below questions. 1. How would you test the CAPM empirically? You need to detail the testing procedure. (1 mark) 2. What is the existing empirical evidence against the CAPM? (1 mark) 3. What is the existing empirical evidence supporting the CAPM? Provide the explanation why the CAPM works in such settings. (2 marks) 4. Do multifactor models provide a solution to CAPM's failure? Why/Why not? (1 mark)