Estimate the cost of firm common stock

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Why is it important to consider the R2 and the standard error of beta as well as the value of beta itself? Then consider this statement: "The CAPM is more useful for investment management, where portfolios are being formed, than for corporate finance, where the CAPM is used to estimate the cost of a firm's common stock." Do you agree with this statement?

Reference no: EM131987583

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