In Applying the CAPM to Estimate the Cost of Equity $\beta$

question 80

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) Expected rate of return on the market, rM.
• B) The share's beta coefficient, (\(\beta\)). i.
• C) Risk-free rate, rRF.
• D) Market risk premium (MRP).
• E) All of the above are subject to dispute.

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