Discuss the some of the strengths and weakness of capm


Discussion Post: Financial Healthcare

The capital asset pricing model (CAPM) is an equilibrium model that defines the relationship between risk and return on assets held as part of well-diversified portfolios. The security market line (SML) is the "working end" of the model that actually is used to estimate the required return based on the asset's beta coefficient. Discuss the some of the strengths and weakness of CAPM?

The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.

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