Suppose AZT is a small value stock and that you use both the CAPM and the Fama French model to compute its cost of capital Under which model is the cost of capital for AZT likely to be higher ...

It is likely to be higher under the FamaFrench model The reason is that the Fa ...

Suppose AZT is a small value stock and that you use both the CAPM and the Fama-French

Question:

Suppose AZT is a small value stock and that you use both the CAPM and the Fama-French model to compute its Under which model is the for AZT likely to be higher?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...