UOL Corporate Finance Capital Asset Pricing Model Assumptions & Equations Essay

Capital Asset Pricing Model (CAPM) is widely used throughout finance for pricing risky securities and generating expected returns for assets given the risk of those assets and cost of capital.

You are required to write a 3,500 (+/- 10%) word essay on the CAPM model. Your essay should include assumptions of CAPM, a detailed explanation of the CAPM equation, problems with the CAPM model in practical application, efficient frontier along with a discussion of security market line. Please ensure your essay follows a logical flow and format. Your work must include graphical analysis of CAPM as relevant.

You are required to use academic resources and e-library. Please do not cite Investopedia, Wikipedia and other unreliable websites. Please research from published academic journals and textbooks the access of which is available to you.
Proper intext citation and bibliography must be done using Harvard style.

1. The word limit for this assignment is 3,500 words (+/- 10%); excluding graphs and tables.
2. 1. Font: Times New Roman
   2. Use double spacing and sufficient margins (3-4 cm)
   3. Headings & subheadings font size: 14 points; the rest of the text: 12 points
   4. All pages should be numbered; include a table of content