Which three of the following are difficulties encountered in implementing WACC?

Question

Quizplus · Accepted Answer

A) The CAPM's beta is an element in calculating the cost of equity and is often difficult to estimate accurately.
B) Obtaining a reliable risk-free rate is challenging because it involves finding an investment with no risk of default, which is difficult to find in reality.
C) Estimating the equity risk premium requires making assumptions about future market conditions and analyzing historical trends, which can be unreliable. 
D) While calculating the existing rate of gearing is important in determining the overall WACC, it is generally less challenging than the other factors mentioned.

Which Three of the Following Are Difficulties Encountered in Implementing