The capital asset pricing model (CAPM) has dominated the asset pricing literature for well over five decades. The model, underpinned on the mean-variance portfolio framework of Markowitz (1958), attempts to explain the expected risk premium of an assets return using a measure of systematic risk, known as beta. However, the major challenge the model has faced, since its development, is its lack of good performance in empirical tests. The model has also been criticized on several of its assumptions that do not appear to adequately describe the real world. Required: a. The first most eloquent and powerful critique of the CAPM was advanced by Roll (1977). Discuss the issues raised by Roll in that critique. b. Identify the other criticisms that have been leveled against the CAPM. c. How have later developments in the asset pricing literature attempted to address some of the issues raised by Roll? Raised by other critiques?