Using the CAPM Approach,what Is the Best Estimate of the Cost

question 4

Multiple Choice

Using the CAPM approach,what is the best estimate of the cost of equity for CGT?

• A)13.00%
• B)13.52%
• C)14.06%
• D)14.62%

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Definitions:

Positive

Characterized by or displaying an optimistic, constructive, or affirmative nature or outcome.

Alert

A state of active attention and readiness to respond to potential threats or important occurrences.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in complex behaviors including planning, decision making, moderating social behavior, and expressing personality.

Activation

The process of stimulating an action or behavior; in psychology, it refers to the arousal of the nervous system prompting mental and physical responses.