Question: Which of the following is a problem when using the CAPM to estimate the cost of capital for equity? A. The risk-free rate of return

Which of the following is a problem when using the CAPM to estimate the cost of capital for equity?

A. The risk-free rate of return fluctuates.

B. The market return fluctuates.

C. The beta fluctuates.

D. The beta is calculated using historical data.

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