Question

Select all that apply

The SML approach requires estimates of the Blank______.

Multiple select question.

beta coefficient


market risk premium


cost of equity capital


cost of debt capital

Answer 1

The SML (Security Market Line) approach requires estimates of the following:

- **beta coefficient**
- **market risk premium**
- **cost of equity capital**

The cost of debt capital is generally not required for the SML approach, which focuses on equity investments.