Return on capital

Hi,

Reference: Ch16, section 3.3

Could you clarify the thought process around returns in excess of risk-free only possible if extra risk taken and the comment regarding management adding value via internally generated goodwill (CMP Ch16 p.12, second bottom paragraph)?

Is this saying that the value management can add is up to that implied by the risk-free rate? Or is it saying that management can create value above this in which case are we saying that CAPM simply does not apply?

Unclear how the comment "management's job may be seen as the creation of internally generated goodwill in excess of the investment on intangible assets" is different from adding value in excess of the risk-free rate.