As a finance intern at Bacontastic (a manufacturer of bacon and bacon-related novelties), Peter Porker's assignment is to come up with some sizzling insights concerning the firm's weighted average cost of capital (WACC). He knows that you can use the CAPM to estimate the cost of equity capital, but he has learned that the CAPM beta does not seem to do a very good job of measuring systematic risk (Note: Assume this is true). Therefore, he decides to estimate a different model for the firm's equity cost of capital. Specifically, he runs the following regression: re=B+ BCAPM (rm.t-rje) + B Pork Pork Demand, where rt is the firm's stock returns, (rmt - rf,t) is the market risk premium, and PorkDemand is a measure of consumers' demand for pork products. Peter suggests his model is better than the CAPM since it more accurately measures the risk that Bacontastic faces. Thus, using his model will give Bacontastic's finance team a better measure of the firm's true WACC. What do you think of Peter's claim? Do you agree that his model is an improvement over the CAPM? Briefly explain why or why not