d. How do historical betas, adjusted historical betas, and fundamental betas differ? Would Ace's historical beta be a better or a worse measure of its future market risk than the historical beta for a portfolio would be for the portfolio's future market risk? Explain. e. What are some alternative ways to obtain a market risk premium for use in a CAPM cost-of- equity calculation? Discuss both the possibility of obtaining estimates from outside organizations and also ways which Ace could calculate a market risk premium itself.

d. How do historical betas, adjusted historical betas, and fundamental betas differ? Would Ace's historical beta be a better or a worse measure of its future market risk than the historical beta for a portfolio would be for the portfolio's future market risk? Explain. e. What are some alternative ways to obtain a market risk premium for use in a CAPM cost-ofequity calculation? Discuss both the possibility of obtaining estimates from outside organizations and also ways which Ace could calculate a market risk premium itself