Explain how the capm assists in calculating the wacc


Assignment

Analyze the Capital Asset Pricing Model (CAPM). Using the course text and an article from ProQuest as references, address the following:

• Explain how the CAPM assists in measuring both risk and return.

• Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its components.

• Illustrate why some managers have difficulty applying the Capital Asset Pricing Model (CAPM) in financial decision making.

• Identify the benefits and drawbacks of using the CAPM.

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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Financial Management: Explain how the capm assists in calculating the wacc
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