Provide a complete explanation of theCapital Asset Pricing Model, with special attention on explaining theCharacteristic Lineand theSecurity Market Line (SML)(with graphs and formulas) and what they are telling us regarding beta and risk. Be sure to include how beta is calculated, what it is used for, the formula for the SML and its purpose. Note: Use graphs and explain them but remember: Putting down a graph and labeling it correctly is necessary, butnot a sufficient answer; you must explain what the graph is telling you.