... for a discussion of 10 This concept, as well as other aspects of the CAPM, is discussed in more detail in Chapter of Eugene F Brigham and Phillip R Daves, Intermediate Financial Management, 7th ... College Publishers, 2002) Chapter of Intermediate Financial Management also discusses the assumptions embodied in the CAPM framework Some of these are unrealistic, and because of this the theory does ... return of percent, a standard deviation of expected returns of 35 percent, a correlation coefficient with the market of Ϫ0.3, and a beta coefficient of Ϫ0.5 Security B has an expected return of 12...