The post must be 100-300 words in length per question.

Question 1

Risk can be measured in several different ways and different conclusions can be reached about how risk is measured. What are some of the ways in which to measure risk? What is stand alone risk? What is the capital asset pricing model (CAPM)? What is the beta coefficient? How are these concepts used to manage risk?

Question 2

Companies estimate the required returns on their securities, calculate a weighted average of the cost of their different types of capital, and use this average cost for capital budgeting purposes. What is the weighted average cost of capital? How is it used in budgeting? What components are used to calculate WACC?