Referencing Styles : Harvard Describe the Capital Asset Pricing Model, including the assumptions underlying the theory Explain the relationship between the Security Market Line and the Capital Market Line, using diagrams and examples to illustrate your explanation Briefly set out arguments in favour of – and against - the theory, outline its uses and make a critique of its underlying assumptions Identify any alternatives which have been suggested in place of CAPM Conclude with an overall assessment of the theory and state any recommendations you may have from your study. Conclusion – a brief overall assessment of the CAPM theory.