In Computing the Cost of Equity for a Firm,which of the Following

question 1

Multiple Choice

In computing the cost of equity for a firm,which of the following are recommended steps in estimating the CAPM beta using regression analysis?
I.Use a sample size equal to or greater than 60.
II.Use daily returns.
III.Use a diversified value-weighted index.
IV.Watch for possible distortions from market bubbles.

• A)I,II,and III only.
• B)I,III,and IV only.
• C)II and IV only.
• D)II,III,and IV only.

---

Definitions:

Pectineus

A muscle in the thigh involved in the movement of the hip and thigh, such as adduction and flexion of the thigh.

Anterior Deep Pectoral

Refers to NO.

Quadriceps Femoris

A large muscle group that includes four muscles on the front of the thigh, responsible for knee extension and hip flexion.

Biceps Femoris

A muscle of the posterior thigh involved in knee flexion and hip extension, part of the hamstrings group.