Investing, Finance, Volatility, Asset Pricing, Convexity.
Market return — Risk-free rate Beta =Slope of the regression line Or [Covariance(r_asset,r_market)/Variance(r_market)] Graphically (r_asset [Y-axis]= risk_free rate [Intercept] + Beta [Slope] * (Market risk premium [X-axis]): Now CAPM has many uses from determining market efficiency, and valuation