• What is the security market line (SML), and what are the similarities and differences between the SML and CML?
• How can the SML be used to evaluate whether securities are properly priced?
• What assumptions are necessary for the CAPM, and what impact does relaxing those assumptions have?
• What do the various empirical tests of the CAPM allow us to conclude?
• Does the selection of a proxy for the market portfolio matter?