Explain in detail the components of CAPM

FIRST PAPER

The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk.

  • .Explain in detail the components of CAPM.
  • .Be sure to include the formula and an explanation of beta.

2 pages

SECOND PAPER

Explain cost of capital in terms of the financing costs to the corporations. Include a detailed explanation of the following:

  • .Cost of debt
  • .Cost of preferred stock
  • .Cost of common stock
  • .Cost of retained earnings

all references  and it has to be in APA format

Latest Assignments