This video dives into the core concepts of the Capital Asset Pricing Model (CAPM) with a focus on understanding its graphs: the Security Market Line (SML), Capital Market Line (CML), and Capital Allocation Line (CAL). You'll learn how these lines relate to expected returns, risk, and beta, and how their mathematical foundations can help you excel in finance exams. Topics include understanding intercepts, slopes (Sharpe Ratio and Market Risk Premium), and their significance in finance. The video also simplifies complex equations into intuitive concepts, ensuring you grasp the theoretical and practical applications of CAPM.