Main contents The caPm's assumptions Market equilibrium The Capital market Line(CMl) The security Market Line(sMl) The market model The Security Characteristic Line scl The Capital Allocation Line(Cal)Main Contents • The CAPM’s Assumptions • Market equilibrium • The Capital Market Line (CML) • The Security Market Line (SML) • The market model • The Security Characteristic Line (SCL) • The Capital Allocation Line (CAL)