what is CAPM approach for calculating the cost of equity?
Answer (1)
18th May, 2021
Hello candidate,
CAPM refers to the Capital Asset pricing model and the approach for the cost of equity involves the formula-
Formula:- (The Return of a security is equal to the risk-free return plus a risk premium, based on the beta of that security or Dividend Capitalization Model).
Hope you found it helpful!!
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