The empirical evidence suggests that CAPM reliably predicts a security's returns 96% of the time 25 Which of the following statements is true? A Most corporate CFOs used alternative models to the CAPM when estimating their projects' costs of capital B. The CAPM provides the most accurate results when it is used to determine which financial investments are best to undertake at any given point in time C. The CAPM will provide a cost of capital that is accurate to the hundredth of a percent D. The CAPM will provide a reasonably good cost of capital estimate in many corporate scenarios V small stocks tend to outperform large stocks when their relative market risks are considered growth stocks tend to outperform value stocks when their relative market risks are considered all of the above statements are true Next e 21 26 990 B