In this video, we walk through a complex finance problem on how to calculate the expected return (k) of a security with a given beta using the Capital Asset Pricing Model (CAPM). We cover key concepts like portfolio composition, the Security Market Line (SML), and Modern Portfolio Theory. By identifying the known and unknown variables, we demonstrate how to solve for the market return and ultimately determine the required rate of return for the security. This video is an excellent resource for students studying corporate finance and preparing for exams.