Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. in estimating market returns and risk free rates t

In estimating market returns and risk free rates to be used in Cost of Capital calculations,...

80.2K

Verified Solution

Question

Finance

In estimating market returns and risk free rates to be used inCost of Capital calculations, what are some of the issues with both(1) historical rates and (2) projectedreturns?

Answer & Explanation Solved by verified expert
4.2 Ratings (775 Votes)
HI IN CAPM formula cost of equity risk free rate betamarket return risk free rate Below are the issues that can be found with historical rates 1 Historical rates are from past period but investor needs return    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Consider how all the factors contributing to MAP impact each other, and put the following parameters...

Finance
1.2K views

Purchasing Power Parity A computer costs $460 in the United States. The same model costs 725...

Geometry
1.2K views

. We describe locations on the Earth using latitude and longitude 0. Using these coordinates,...

Accounting
1.2K views

Please help, I am so confused, I only could answer the first part. ...

Accounting
1.2K views

what would it include Multiple Choice Question 231 Cullumber Company issued $5500000...

Accounting
1.2K views

El balance de Bryan Corporation se presenta a continuacin. Las ventas del ao fueron de...

Accounting
1.2K views

im sorry it is out of order but its three parts Titan Networking...

Accounting
1.2K views

Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is...

Accounting
1.2K views

Review the requirements of the Sarbanes-Oxley Act, which requires public companies to engage independent auditors....

Accounting
1.2K views

The information presented here represents selected data from the December 31, 2022, balance sheets and...

Accounting
1.2K views

Trial balance totals $29,600 P2.3A (LO 1, 2, 3, 4) Maquoketa Services was formed on...

Accounting
1.2K views

7. [-/1.81 Points] DETAILS TANAPMATH5 9.4.036 Let f(x) = 4x5/4 + 4x3/2 + 6x. Find...