Discuss capital asset pricing model. 

The Capital Asset Pricing Model (CAPM) is a financial model that is used to determine the expected return of an investment. It is based on the idea that investors require a risk premium to compensate for the additional risk they are taking on when investing in a particular asset. The risk premium is calculated by taking the difference between the expected return of the asset and the risk-free rate of return, which is typically the rate of return on government bonds.

The CAPM is based on several assumptions, including:

1. Investors are rational and risk-averse.
2. All investors have access to the same information.
3. Investors have homogenous expectations ______ ___ ______ _________ ____.
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