Precisely explain how the capital asset pricing model CAPM determines the required rate of return on a portfolio of securities.

Precisely explain how the capital asset pricing model CAPM determines the required rate of return on a portfolio of securities. Include in your discussion a mention of systematic and unsystematic risk and which is priced using CAPM.

Precisely explain how the capital asset pricing model CAPM determines the requiredrate of return on a portfolio of securities. Include in your discussion a mention ofsystematic and unsystematic…