Which of the following statements is false?
A) The market capitalization is the total market value of its outstanding shares.
B) The market portfolio is the portfolio of all risky investments.
C) Many practitioners believe it insensible to use the CAPM and the security market line as a practical means to estimate a stock's required return and therefore a firm's equity cost of capital.
D) To estimate the equity cost of capital using the CAPM, the first thing we need to do is identify the market portfolio.

Question

Quizplus · Accepted Answer

C) Many practitioners believe it sensible to use the CAPM and the security market line as a practical means to estimate a stockʹs required return and therefore a firmʹs equity cost of capital.

Which of the Following Statements Is False