Capital Asset Pricing Model - How Detailed?

Should we just know the formula alone or should we also understand how the formula is derived? I understand each term and how they relate to one another, but do we have to know how it relates to the SML, etc?

Yes, you have to know how CAPM relates to the SML, CML, and individual CALs.

I wrote an article on this stuff that may be of some help:

Thanks for the link, you’ve written it up incredibly simply! And thanks for another great response

You’re quite welcome.