In this lecture, we explore capital market theory, transitioning from our previous (March 14) lecture on portfolio theory.  Capital market theory examines the equilibrium pricing of individual securities, a concept better known as the capital asset pricing model (CAPM). This session mainly draws upon the lecture note titled "Portfolio and Capital Market Theory," which you can locate as the tenth item on the course website's lecture notes section. Toward the end of this recorded lecture, I will discuss the Capital Market Theory Class Problem, which is available at http://fin4335.garven.com/spring2024/capmktproblem.pdf.