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What are the advantages of using the Security Market Line (SML) approach to finding the cost of equity capital? What are the disadvantages? What specific

What are the advantages of using the Security Market Line (SML) approach to finding the cost of equity capital? What are the disadvantages? What specific pieces of information are needed to use this method? Are all of these variables observables, or do they need to be estimated? What are some of the ways in which you could get these estimates?

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