Question: 9. In class, we discussed some problems with CAPM that were not usually discussed in finance textbooks. Which of these is not an issue? 2.

9. In class, we discussed some problems with CAPM that were not usually discussed in finance textbooks. Which of these is not an issue? 2. The beta used in CAPM does not have a standard method of calculation, there could be many different beta values for the same stock b. If the risk-free rate increases to a level greater than expected market return, the cost of equity becomes lower than the risk-free rate. c. The difference between the cost of equity among companies depends solely on the company's beta d. CAPM produces only an estimate of the cost of equity

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