Benchmarking CAPM Cost of Capital Market Risk 
Harvard Business Review
MARCH 10, 2011
It's the opening paragraph of a Harvard Business Review article called "What's Your Real Cost of Capital?" knew that firms were making heavy use of the capital asset pricing model (CAPM) to size up growth opportunities, but that the model was only as good as its inputs. The same is true for the CAPM. ". by James J.
Harvard Business Review
MARCH 10, 2011
Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.
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