Explain in detail the components of CAPM


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


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

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