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Question
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.
Answer
This answer is hidden. It contains 14 characters.
Related questions
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