wacc had two assumption gearing level is kept same and the risk is level is unchanged. but suppose gearing is level if gearing is kept the same level and but risk changes is this the reason why we use capm that factors the risk of the project also?
Ask the Tutor ACCA FM
Regarding Capm
4y ago#1Yes. CAPM looks at the riskiness of the investment.
Sign into reply to this topic.