In computing the cost of equity for a firm, which of the following are recommended steps in estimating the CAPM beta using regression analysis?

I. Use a sample size equal to or greater than 60.

II. Use daily returns.

III. Use a diversified value-weighted index.

IV. Watch for possible distortions from market bubles.

IV.

		I, III, and IV only.
		II and IV only.
		I, II, and III only
		II, III, and IV only.