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You are evaluating an investment opportunity in the automotive sector. The investment has a similar risk profile as TESLA (TSLA). Using the data (table) below,

You are evaluating an investment opportunity in the automotive sector. The investment has a similar risk profile as TESLA (TSLA). Using the data (table) below, calculate the yearly cost of capital for this investment using the Fama-French-Cahart (FFC) approach, given the yearly current risk-free rate is 5%:

image text in transcribed 14.03% None of the alternatives 12.61%10.43%15.03%

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