Which of the following is not a major disadvantage to the SML approach?

A. It requires that we estimate the market risk premium, and if this estimate is poor, the resulting cost of equity will also be poor.

B. It doesn't explicitly adjust for risk.

C. It requires that we estimate the beta coefficient of the stock, and if this estimate is poor, the resulting cost of equity will also be poor.

D. We rely on the past to predict the future, and economic conditions can change quickly.