You are explaining cost of equity models for private firms to someone and have discussed the modified

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You are explaining cost of equity models for private firms to someone and have discussed the modified CAPM. The person has an MBA and understands the Capital Asset Pricing Model. She asks you why "unique risk" is in the modified CAPM but not the standard CAPM when all firms, public and private, have unique risks. How do you respond?

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Essentials Of Forensic Accounting

ISBN: 12

2nd Edition

Authors: Michael A Crain, William S Hopwood

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