We learned how the efficient portfolio equals to the market portfolio by applying CAPMs assumptions. Thanks to those strong assumptions, we have a clean and simple theoretical framework to explain investors behavior, identify risk and risk premium in portfolio, and market equilibrium. But do you agree with three assumptions made in CAPM? Please take a closer look at those three, and think about the outcomes when one of those assumptions are changed or modified. Could you describe it to us how the required return of each assets will be different, as well as portfolio efficiency, CML and SML?