Identify the benefits and drawbacks of using the capm

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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.

Develop a 200 - 300 word answer supporting your position.

Reference no: EM13897876

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