Discussion Block # 2 - CAPM

1. CAPM = Rf + Beta * (Rm - Rf). Thus define:
   1. Rf
   2. Beta
   3. Rm
   4. and very important you understand that (Rm - Rf) = MRP, so define MRP
   5. Now with the understanding of the mechanics/variables of CAPM what in and of itself is CAPM, what is it reflecting?

DISCUSSION BLOCK # 3 - WACC

1. Weighted Average "COST" of Capital
   1. What is this formula, explain it to me and your group.
   2. Why is there a "COST" to equity capital, seems weird aye.