Benefits and drawbacks of using the capm


Question 1: Explain how the CAPM assists in measuring both risk and return.

Question 2: Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its components.

Question 3: Illustrate why some managers have difficulty applying the Capital Asset Pricing Model (CAPM) in financial decision making.

Question 4: Identify the benefits and drawbacks of using the CAPM.

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Finance Basics: Benefits and drawbacks of using the capm
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