The CAPM model helps predict how much return you can expect from an investment based on its risk. It's like a crystal ball for decision-making. By using this model, companies like Google and Coca-Cola can figure out the right rate of return for their assets. The Modern Portfolio Theory is another tool that helps build a mix of assets to maximize returns while managing risks. It's not just about how risky one asset is, but how it fits into the bigger picture of a portfolio's risk and return.