The Security Market Line Approach

The security market line approach:

A) Provides an actual cost of equity because the risk level of the firm is known with certainty.
B) Provides an actual cost of equity because the market risk premium is constant over time and across assets.
C) Relies on the past as a predictor of the future.
D) Is less applicable to business firms than the dividend growth model.
E) Considers the projected growth rate of the firm.