R = R +.(RmR) same last where R, is the return on individual asset i, R, is the risk free rate of return, Rm is the return on the market portfolio, and (Rm-R) is the market excess return over the risk-free asset. Suppose you want to test the CAPM model using the IBM stock return. You ob- serve the following in the capital market: (i) over the last 15 years IBM stock generated, 6.5% excess return over the risk-free asset (RIBM - R); (ii) the over the years, average market market excess return over the risk-free asset (Rm-R,) has been 4.5%; (iii) the variance of (RM-R+) is 15%; (iv) the covariance between (RIBM-R) and (Rm-R+) is 21.6%. Based on this information, how can test and conclude whether CAPM is indeed a good asset pricing model? (5 Marks) on average, 15 m