What is the relationship between risk and return

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1. First, what is "risk" in business? How can we measure risk? Next, what is the relationship between risk and return? (Brief explanation)

2. Next, breakdown WACC and CAPM. What is the formula for WACC? What does each variable stand for? What is the formula for CAPM? What does each variable stand for?

3. Finally, how does WACC and CAPM relate to "risk" and "return?"

Reference no: EM131915215

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