Please provide your comments about the below paragraph, your help will be truly appreciated:

The capital asset pricing model "says that the expected return on a risky asset equals the risk-free rate plus a risk premium, and the risk premium depends on how much of the asset's risk is undiversifiable" (Smart, Gitman & Joehnk, 2017p. 183).Undiversifiable risk is related to the risk remaining in your portfolio regardless of how diversified you feel that you have your portfolio can be attributed to inflation, interest rates, economic growth and more.To quantify this undiversifiable risk, a number can be used which is called beta."A security's beta indicates how the security's return responds to fluctuations in market returns, which is why market risk is synonymous with undiversifiable risk" (Smart, Gitman & Joehnk, 2017p. 183).

We are to locate the risk-free rate and beta on 2 stocks provided from a list and determine the required rate of return using the capital asset model pricing model.In doing so the, Yahoo Finance as of 4/12/18 provided a beta for Sempra Energy at 0.51 and Ford has a beta of 0.85.Another piece that is required for the equation would be the risk-free rate and according to the US Dept of Treasury the risk-free rate as of 4/12/18 is 2.83%.The expected market return that is listed in the text is 8% which is what will be used in this exercise.The expected rate of return is calculated:

Ford =rj= 2.83% + [0.85 * (8.0% - 2.83%)] = 7.22%

Sempra Energy =rj= 2.83% + [0.51 * (8.0% - 2.83%)] = 5.47%

Ford is a motor company specializing in automobiles whereas Sempra Energy is an energy company that specializes in natural gas.Investors can expect a return from both companies as they are moving in favor with the expected market return.The CAPM is simple and has a practical appeal that can cause the beta and the CAPM to "remain important tools for investors who seek to measure risk and link it to required returns in security markets" (Smart, Gitman & Joehnk, 2017p. 188).Many investors turn to such a tool to evaluate if their investment will provide a return prior to the investment happening as no one wants to make an investment without receiving some type of return on their money.