FIN 571 Bangor University The Capital Asset Pricing Model Essay

Capital Asset Pricing Model (CAPM) is widely used throughout finance for pricing risky securitiesand 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 shouldinclude assumptions of CAPM, a detailed explanation of the CAPM equation, problems withthe CAPM model in practical application, efficient frontier along with a discussion of securitymarket line. Please ensure your essay follows a logical flow and format. Your work mustinclude graphical analysis of CAPM as relevant.You are required to use academic resources and e-library. Please do not cite Investopedia, Wikipediaand other unreliable websites. Please research from published academic journals and textbooks theaccess of which is available to you.Proper intext citation and bibliography must be done using Harvard style.