Question: OQ6.1. What is CAPM? How is it defined? What does the CAPM provide and what is it based on? How is the CAPM conceptually related

OQ6.1. What is CAPM? How is it defined? What does the CAPM provide and what is it based on? How is the CAPM conceptually related to the risk return story?

OQ6.2. Can a security have a negative beta? How would the securitys expected return compare to the expected return on the riskless asset? What does this mean?

OQ6.3. What is generally used as a proxy for the expected return on the riskless asset?

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