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Large variations in cost of capital estimates are caused by which of the following variables? (I) Beta (II) Equity market risk premium (III) Risk-free rate

Large variations in cost of capital estimates are caused by which of the following variables?

(I) Beta

(II) Equity market risk premium

(III) Risk-free rate

(IV) Adjustments for project-specific risk

A) I only

B) II only

C) III only

D) I, II, and III only

E) I, II, III, and IV

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