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Which of the following statements is FALSE? A. The CAPM remains the predominant model used in practice to determine the equity cost of capital. B.

Which of the following statements is FALSE?

A.

The CAPM remains the predominant model used in practice to determine the equity cost of capital.

B.

Some evidence suggests that the market risk premium has declined over time.

C.

The empirically estimated security market line is somewhat steeper than that predicted by the CAPM.

D.

Low beta stocks have tended to perform somewhat better than the CAPM predicts.

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