One Criticism in Using the CAPM to Calculate the Cost

question 45

Short Answer

One criticism in using the CAPM to calculate the cost of equity capital is that ______________________________ and the __________________________________________________ are quite sensitive to the time period and methodology used in their computation.

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Definitions:

Ile-Gln

A peptide formed by the amino acids Isoleucine and Glutamine, indicating the presence of a dipeptide bond between them.

Tetrapeptide

A peptide composed of four amino acids linked by peptide bonds.

Ser-Leu-Phe-Pro

A sequence of amino acids, possibly representing a segment of a protein or a peptide.

Trypsin

An enzyme that digests proteins by cleaving peptides at the carboxyl side of lysine and arginine, essential in digestion.