In this video, we dive into the essentials of the Capital Asset Pricing Model (CAPM), covering crucial concepts like beta, alpha, the Security Market Line (SML), and stock pricing. We explain how to use CAPM to determine if stocks are underpriced, overpriced, or fairly priced, and how to calculate expected returns. Additionally, we discuss market efficiency theory, including its weak, semi-strong, and strong forms, and review options pricing through payoff tables. This video is a must-watch for finance students looking to master CAPM and excel in their exams with practical, clear explanations and examples.