What is the Capital Asset Pricing Model (CAPM)? What are some of its key assumptions? Has it

Question:

What is the (CAPM)? What are some of its key assumptions? Has it been empirically verified? What is the role of the Security Market Line in the CAPM? Suppose you had to estimate the required rate of return on stock using the CAPM. What data would you need, where would you get the data, and how confident would you be of your estimate?

Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its...