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In Applying the CAPM to Estimate the Cost of Equity

Question 29

Multiple Choice

In applying the CAPM to estimate the cost of equity capital, which of the following elements is not subject to dispute or controversy?


A) The expected rate of return on the market, rM.
B) The stock's beta coefficient, bi.
C) The risk-free rate, rRF.
D) The market risk premium (RPM) .
E) All of the above are subject to dispute.

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