Ferson, Wayne E.; Locke, Dennis H. - In: Management Science 44 (1998) 4, pp. 485-500
Practitioners needing estimates of a firm's equity cost of capital have long relied on the Capital Asset Pricing Model (CAPM). Recent evidence casts renewed doubt on the validity of the CAPM and beta. However, there is not much evidence to gauge the importance of the rejections of the CAPM in a...
