How would I give a respond to a question like this ------->CAPM investors has a diverssified portfolio to market portfolio, which diversifed portfolio eliminates unsystematic risk. Also, the advantages are systematic risk, investment appraisals, and having values to CAPM variables. Borrow at risk-free rate and determining project proxy beta. Advantages of CAPM model may hope that the market become sluggish and bring the stock down which will reduce dividends.