I have to assume the CAPM is used to form the weighted average cost of capital (WACC). Form a discussion on the CAPM in which I have to describe each of the following issues.

o I have to determine how diversification is important in the formation of the CAPM. My discussion should focus on the topics of total risk, systematic risk, and unsystematic risk.

o I have to define and provide numerical illustrations for the CAPM. I have to expend how the model adjusts across different inputs and the consequence for valuation.

o I am not sure if my research and defend the validity of the CAPM given the academic literature is the right research. I have to based upon this model, explain the ways that managers can form initiatives to enhance the value of the corporation. I need ideas how to provide numerical illustrations of these initiatives based upon modifying the assumptions in the model and re-calculatingthe final value.

I do not need a tutor that trying not to help and I am not trying to pass this work as my own just need ideas.