This document discusses the Capital Asset Pricing Model (CAPM), including its assumptions, implications, equations for the Capital Market Line and Security Market Line, and how it relates to portfolio risk and the beta factor of the market portfolio. It also briefly mentions the Arbitrage Pricing Theory and how it can be used.

2. CAPITAL ASSET PRICING MODEL

3. CONTENT
Introduction to CAPM shubham
Portfolio risk “
Security market line (SML) shyamal
Capital market line (CML) shashi
Beta factor of market portfolio sonika
Benefits and limitations of CAPM sonika
Arbitrage Pricing Theory sherya
Using the APT sherya

4. CAPITAL ASSET PRICING MODEL
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5. ASSUMPTIONS OF CAPM
• Can lead and borrow unlimited amounts under the risk free rate of
interest
• Individuals seek to maximize the capacity

6. IMPLICATIONS OF CAPM

7. CAPM EQUATION

8. CAPITAL MARKET LINE

9. CML EQUATION

10. SECURITY MAEKET LINE

11. SML EQUATION