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Country risk can best be accounted for in the cost of equity for an emerging market by: Group of answer choices Incorporating the effect of
Country risk can best be accounted for in the cost of equity for an emerging market by:
Group of answer choices
Incorporating the effect of returns on sovereign bonds and global equity returns in the cost of equity.
Adjusting a U.S. beta upward for the industry in question to account for the greater volatility in emerging markets.
Adding the sovereign spread to the risk-free rate in the cost of debt.
Adding the sovereign spread to a CAPM-based cost of equity estimate.
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