How would I give a response to a answer like this---------->The CAPM model also comes with some various disadvantages when using it as well. One of the issues with this model is that it obtains its risk free rate from the yield on short term government bonds. This rate often fluctuates daily and can cause volatility. Anther problem with this model is that stock returns can be negative, essentially just meaning that they have gone down. To alleviate this problem, often long term averages are used so the calculation of the return on market is a positive number and makes the formula work. Yet another major disadvantage is that the CAPM assumes that one can borrow money at a risk free rate(Zucchi, 2015). Borrowing money always comes with a certain amount of inherent risk. Lastly, is that the CAPM uses beta in the formula and in order to use this model, one must find the beta of the asset.