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.
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