NO.PZ2023123001000014
问题如下：
The analyst decides to rely on the build-up method to estimate Firm X’s required return on equity. Which statement provides the most accurate reflection as to why this choice of method addresses the issue of the lack of public comparable companies from which to estimate beta?
选项：
A.The
build-up method uses a standard equity-risk premium without adjusting it by a beta estimate
The build-up method assumes a beta of zero
C.The build-up method assumes a company-specific risk premium and this alleviates the need for a beta
解释：
A is Correct. The build-up method begins with the risk-free rate, then adds an equity risk premium without an adjustment for beta. This omission effectively assumes a beta of one. This approach differs from using the CAPM or expanded CAPM in which beta estimates are necessary.
B is incorrect because the build-up method assumes beta of one, not zero.
C is incorrect because the company-specific risk premium does not rely on comparable public companies and this premium is included in both the build-up and expanded CAPM methods
C选项解释中的“because the company-specific risk premium does not rely on comparable public companies”对判断选项有什么意义呢？
