Measurement error in the cost of equity of U.S. industries

Arshanapalli, Bala; Nelson, William
June 1999
American Business Review;Jun99, Vol. 17 Issue 2, p119
Academic Journal
Shows the importance of using the global market index in a capital asset pricing model (CPAM) world even for large countries to avoid errors in computing the cost of equity through a study of United States industries. Error pattern in the US resembling those from smaller countries; Examination of the impact capital market integration.


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