 In this module, I will explain a very famous concept which is the capital asset pricing model and it is abbreviated as CAPEM. So CAPEM is basically based upon the theory of portfolio selection. So we have discussed a technique which was the main variance approach. This is another concept which is used to select a portfolio and this particular concept is very famous. It was established by, it was developed by William Sharp in 1964 and later on a number of other experts, financial experts also worked on it and it is extensively used to decide how the portfolio will be formed. So capital allocation, capital asset pricing model may, you have to do capital allocation in different risky assets, in risky assets and we basically look at this particular concept of CAPEM that explains the, that is based upon the relationship between systematic risk and the expected return of the assets which you are going to take into account and CAPEM is extensively used. So when we look at the model, it is based upon several assumptions. The first assumption is that we assume that all the investors are rational investors and they are, they consider the main variance concept and they try to optimise that. You want them to take at least risk and want to earn maximum return. So we can say that they are main variance optimisers. The next assumption is that investors have the same information and on the basis of that information, their expectations are homogeneous. So they apply the same expectations on the basis of that information in the future. Another important thing which we are going to assume is that whatever assets we are dealing with, we are going to deal with in CAPEM, and another important thing which is assumed is that there is a certain common risk free rate landing opportunity available for all the people. And we will take that and account for our risk free return. So any risk free return investment opportunity, all the investors can access it and they can invest in it. So this is another major assumption. Now by considering, by taking into account these assumptions, we are going to develop our market portfolio. Market portfolio can be defined as a portfolio that holds all different types of assets in proportion to their market value. So when we say that in proportion to market value, in order to explain that, I am going to take up an example. When we talk about the proportions of market value in the market portfolio, what does that mean? So we are assuming that suppose an investor has a choice, or a financial analyst who decides the portfolio, he has a choice to invest in three types of assets. One asset is suppose general motor stocks. Second, you have stocks of Toyota and third, you have a risk free asset. So these are three types of investment opportunities that you can account for and make your portfolio. So we are assuming that as per market value, we are going to explain the proportions of investment to make the market portfolio. So in this example, we are assuming that the stocks of your general motor total available investment stock is of $66 billion. And the stocks available of Toyota, suppose, are of $22 billion. And you have $12 billion risk free asset for investment. Together, you have $100 billion of investment opportunity. So when we say that market value, according to the market value, you have investment opportunities. Your portfolio is defined by the same proportions. This means that when we look at GM stock, it is going up to $66 billion. And if we look at the stocks of Toyota, it is at $22 billion. So when we are going to form a portfolio, so the similar proportion will be accounted for. Like I told you, it is $66 billion or $22 billion. So the proportion of the portfolio that you want to make according to the market value in the market, is going to be defined according to your portfolio. If the ratio there is 66 divided by 22 is 3 to 1, then the ratio of 3 to 1 will be the same in your portfolio. This is one of the major assumptions of CAPM. Thank you very much.