Capital Asset Pricing Model E(Rat rf+ Bae(Rmt-Rf Ratnominal rate of return of asset a in time t, Rft is the nominal rate of return of risk-free asset in time t. Ba is the index of nominal nondiversifiable risk of asset a Rmt is the nominal rate of return of the market portfolio in time t, and e is the expected value operator.Capital Asset Pricing Model Rat=nominal rate of return of asset a in time t, Rft is the nominal rate of return of risk-free asset in time t, Ba is the index of nominal nondiversifiable risk of asset a, Rmt is the nominal rate of return of the market portfolio in time t, and E is the expected value operator. E(Rat)  Rft  aE(Rmt  Rft)