Students will be required to research the topic relating to the concept of the definition and application of the CAPM (Capital Asset Pricing Model) model

Students will be required to research the topic relating to the concept of the definition and
application of the CAPM (Capital Asset Pricing Model) model. Explain the concept of the Capital
Asset pricing Model (CAPM) and how it is utilised to determine the required return on a share.
Explain why Beta is important and how it is calculated.
Required
a) The paper should include information about how CAPM is calculated and how it is applied
and interpreted. One to one and a half(1⅟2) pages. Students should research and provide a
minimum of 3 referneces.20 marks
b) A final requirement is to calculate the three-year Beta for a publicly listed company from
those companies listed on the ASX. 20 marks
c) Students can use an excel spreadsheet to calculate an provide detail in the report using a
snapshot into the word document and provide a brief explanation of the company and a
brief interpretation of your calculation. (Half page for calculation and half page for brief
description of company and interpretation).