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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% : 10.43% None of the alternatives 15.03% 14.03% 12.61%
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