According to CAPM, which of the following would increase a company's cost of equity if the...

According to CAPM, which of the following would increase a company's cost of equity if the company had origanlly calculated Ke using: Rf=1.5%, Beta = 1.31, and the market risk premium is 8%?

1- Increasing Beta

2- Increasing Rf

3- Decreasing Rf

4- Increasing the rick on the market

answer options -

a- 1 and 2

b- 1, 2, and 3

c- 2, 3, and 4

d- 1, 3, and 4

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Expert Solution

jeff jeffy answered 1 year ago

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