The researchers tested the Capital Asset Pricing Model (CAPM) in South Africa using real terms. They wanted to see if the model could accurately predict investment returns in the South African market. They looked at data from the FTSE/JSE all-share index, government bonds, and consumer price indices from 1964 to 2010. The CAPM suggests that higher risk leads to higher returns, and this relationship should be linear. The researchers tested this prediction for the South African market and found that it held true. They used regression tests and Hotelling's test to confirm their findings.